1. For a stock with a beta coefficient of b = 1.50, it is:

1. more volatile than the average stock.
2. about the same volatility of an average stock.
3. less volatile than the average stock.
4. 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:

1. about 20%.
2. about 25%.
3. about 30%.
4. 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:

1. about 0%.
2. about -10%.
3. about -20%.
4. about -30%.

4. For a stock with a beta coefficient of b = 0, which of these statements is true in this particular example?

1. The line in the graph is flat
2. It is like a riskless asset with a guaranteed return of 10% no matter what the market does
3. There is no chance of lower performance than the market but also no chance of better performance.
4. All of the above.