Beta is a measure of how a stock moves with the overall market of securities. \ \ The market is said to have a beta of 1.0. Stocks will have betas greater than 1.0 and lower than 1.0. \ \ Some stocks even have negative beta.\ \ Which one of the following statements is the most accurate as it pertains to Beta?\ \ \ A company with a beta of .35 would not be desireable in an economic climate where the market fell by 6%. \ \ \ A company with a beta of .35 would be desireable no matter the economic climate of the market. \ \ In an enviornment where diversification is possible and investors can hold the market portfolio, the relevant measure of risk for a company is its correlation with the market portfolio is Beta.\ \ If Oracle has a beta of 1.30\ \ When the market rises by 10%\ \ Oracle price rises by 13.0%\ \ A fall in the market of 10% brings about a decline\ \ in Oracle of 13.0%.\ \ \ A company with a beta of .35 would be desireable in an economic climate where the market increased by 6%. \ \ \ A company with a beta of .35 would be desireable in an economic climate where the market fell by 6%.