Multiple Choice
Which of the following statements is true?
A) A stock with a beta less than zero has no exposure to systematic risk.
B) A stock with a beta greater than 1.0 has lower nondiversifiable risk than a stock with a beta of 1.0.
C) A stock with a beta less than 1.0 has lower nondiversifiable risk than a stock with a beta of 1.0.
D) A stock with a beta less than 1.0 has higher nondiversifiable risk than a stock with a beta of 1.0.
Correct Answer:
Verified
Correct Answer:
Verified
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