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If a stock has a beta of 4, what can one infer about the expectations of that stock relative to the market? Group of answer
If a stock has a beta of 4, what can one infer about the expectations of that stock relative to the market?
Group of answer choices
The stock will tend to have movements equal to the market.
The stock is as risky as the market.
The stock will tend to double market movements.
The stock is four times as risky as the market.
The stock's expected return is equal to that of the market.
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