Multiple Choice
If a certain stock has a beta greater than 1.0,it means that
A) the stock's return is more volatile than that of the market portfolio.
B) an investor can eliminate the risk by combining it with another stock that has a negative beta.
C) an investor will earn a higher return on his stock than that on the market portfolio.
D) the stock is less risky than the market portfolio.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: At a given point in time,the SML
Q21: An analyst determined that for the past
Q34: Under the CMT, the relevant risk to
Q43: With the APT, risk is defined in
Q50: Risk factors in the APT must possess
Q51: What does it mean when the CAPM
Q52: If markets are truly efficient and in
Q53: A security that plots above the SML
Q57: How are securities chosen and in what
Q59: When markets are in equilibrium,the CML will