If a stock has a beta greater than 1.0, it means:
A) the stock's return has greater than average sensitivity to the market return.
B) the stock would be an attractive holding during a bear market.
C) an investor will earn a higher return on the stock than the market returns.
D) the stock is less risky than the market portfolio.

Question

Quizplus · Accepted Answer

A beta greater than 1.0 indicates that the stock's return is more sensitive to market movements, meaning it is more volatile and has greater risk compared to the market.

If a Stock Has a Beta Greater Than 1