Multiple Choice
A beta coefficient of 1.2 implies
1) the stock is more risky than the market
2) the stock's return is 1.2 times the return on the market
3) the stock is less risky than the market
4) the market's return is 1.2 times the return on the stock
A) 1 and 2
B) 1 and 4
C) 2 and 3
D) 3 and 4
Correct Answer:
Verified
Correct Answer:
Verified
Q20: An investor may reduce risk by<br>1) selecting
Q21: An investor may reduce risk by selecting<br>A)
Q22: A beta coefficient is a measure of
Q23: There is no risk in a world
Q24: A beta of 1.0 indicates that the
Q26: A diversified portfolio<br>A) increases systematic risk<br>B) reduces
Q27: Systematic risk is reduced through portfolio diversification.
Q28: A beta coefficient for a stock of
Q29: The larger the standard deviation of an
Q30: What is the required return using the