Question
1. For a stock with a beta coefficient of b = 1.50, it is: more volatile than the average stock. about the same volatility of
1. For a stock with a beta coefficient of b = 1.50, it is: more volatile than the average stock. about the same volatility of an average stock. less volatile than the average stock. Cannot determine. 2. For a stock with a beta coefficient of b = 1.50, in a year when the market return is 20%, we expect, in this particular example, the stock's return to be: about 20%. about 25%. about 30%. not enough information to determine. 3. For a stock with a beta coefficient of b = 1.50, in a year when the market return is -10%, we expect, in this particular example, the stock's return to be: about 0%. about -10%. about -20%. about -30%. 4. For a stock with a beta coefficient of b = 0, which of these statements is true in this particular example? The line in the graph is flat It is like a riskless asset with a guaranteed return of 10% no matter what the market does There is no chance of lower performance than the market but also no chance of better performance. All of the above.
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