Question
1 If you were to compare the returns of an individual share to a market index, select the answer below that is most true. A.
1
If you were to compare the returns of an individual share to a market index, select the answer below that is most true.
A. The returns of the individual share will show less variability than those of the market index, if they have the same beta.
B. The returns of the individual share will show less variability than those of the market index, if the share's beta is greater 2.
C. The returns of the individual share will show less variability than those of the market index, if the share's beta is greater 1.
D. The returns of the individual share will show the same level of variability than those of the market index, if they have the same beta.
E. The returns of the individual share will show more variability than those of the market index, if they have the same beta.
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
