Asked by
Shainah Mae Noval
on Dec 20, 2024Verified
A stock with a beta of 1.0 will:
A) always generate a return equal to the market average.
B) always generate a return that is close to the market average.
C) always generate a return that is at least as large as the market average..
D) All of the above are correct.
E) None of the above is correct.
Beta
A gauge of the variability of a stock's value relative to the comprehensive market.
Market Average
A statistical measure that represents the overall market or a specific segment of it, commonly used to track market performance.
Return
The profit or deficit experienced on an investment during a given period, represented as a percentage of the original investment's value.
- Decode the significance of beta values as indicators of a security's level of systematic risk.
Verified Answer
MS
Learning Objectives
- Decode the significance of beta values as indicators of a security's level of systematic risk.