Decreasing beta will generally cause a to increase.

Name: Decreasing beta will generally cause a to increase.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Decreasing beta (β), which represents the risk or volatility in relation to the market, does not directly cause alpha (α) to increase. Alpha measures the performance of an investment relative to a benchmark index, and its increase or decrease depends on the investment's performance, not just changes in beta.

Decreasing Beta Will Generally Cause a to Increase