Multiple Choice
A firm in an industry that is very sensitive to the business cycle will likely have a stock beta
A) greater than 1.0.
B) equal to 1.0.
C) less than 1.0 but greater than 0.0.
D) equal to or less than 0.0.
E) There is no relationship between beta and sensitivity to the business cycle.
Correct Answer:
Verified
Correct Answer:
Verified
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