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Shainah Mae Noval
on Dec 20, 2024

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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.
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MONIKA SZCZEPANIAKDec 26, 2024
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