A friend tells you about a fund that does just as well as the market in bull markets but cushions your fall in bear markets.That is,its returns fall by less than the market's in bear markets.Your friend is telling you that the fund's Beta is ________ in bull markets,but that the fund's Beta is ________ in bear markets.
A) less than one; less than one
B) less than one; equal to one
C) equal to one; less than one
D) equal to one; greater than one
E) greater than one; less than one

Question

Quizplus · Accepted Answer

Your friend is telling you that the fund's Beta is equal to one in bull markets (because it goes up by the same amount as the market), but that the fund's Beta is less than one in bear markets (because the fund's returns fall by less than the market's returns).

A Friend Tells You About a Fund That Does Just