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The volatility of a stock is often measured by its beta value. More information about beta values is provided below. The table below gives
The volatility of a stock is often measured by its beta value. More information about beta values is provided below. The table below gives beta values for five stocks. Complete (a) and (b). Company A B C D E Beta 0.37 0.70 1.25 2.76 5.22 Click the icon to view information about the beta value of a stock. a. For each of the five companies, interpret the beta value. Choose the correct answer below. A. The stocks of companies A and B move about 37% and 70% as much as the overall market, respectively. The stocks of companies C, D, and E move about 25%, 176%, and 422% more than the overall market, respectively. B. The stocks of companies A and B move about 63% and 30% as much as the overall market, respectively. The stocks of companies C, D, and E move about 125%, 276%, and 522% as much as the overall market, respectively. C. The stocks of companies A and B move about 37% and 70% more than the overall market, respectively. The stocks of companies C, D, and E move about 25%, 176%, and 422% more than the overall market, respectively. D. The stocks of companies A and B move about 37% and 70% less than the overall market, respectively. The stocks of companies C, D, and E move about 25%, 176%, and 422% more than the overall market, respectively.
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