menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Principles of Corporate Finance
  4. Exam
    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
  5. Question
    One Would Expect a Stock with a Beta of 1
Solved

One Would Expect a Stock with a Beta of 1

Question 42

Question 42

Multiple Choice

One would expect a stock with a beta of 1.25 to increase in returns:


A) 25% more than the market in up markets.
B) 25% more than the market in down markets.
C) 125% more than the market in up markets.
D) 125% more than the market in down markets.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q6: One would expect a stock with a

Q19: Briefly explain the capital asset pricing model.

Q20: Both the CAPM and the APT stress

Q29: All else equal, investors prefer to choose

Q43: Assume the following data for a stock:

Q46: By combining lending and borrowing at the

Q47: Suppose the beta of Microsoft is 1.13,the

Q65: The beta of the market portfolio is<br>A)0.0.<br>B)+0.5.<br>C)−1.0.<br>D)+1.0.<br>

Q76: The correlation coefficient measures the<br>A)rate of return

Q81: The capital asset pricing model (CAPM)states which

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines