Henriksson (1981) found that, on average, betas of funds __________ during market advances.
A) increased very significantly
B) increased slightly
C) decreased slightly
D) decreased very significantly
E) did not change

Question

Quizplus · Accepted Answer

Betas of funds tend to decrease slightly during market advances because the underlying stocks in the funds tend to become less volatile relative to the market as a whole.

Henriksson (1981) Found That, on Average, Betas of Funds __________