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Anna Lyst Observes That the Beta of a Certain Stock

Question 217

Multiple Choice

Anna Lyst observes that the beta of a certain stock is 0.8. This means that:


A) if the S&P 500 Index loses 10%, this stock can be expected to lose 8%.
B) the stock is 80% more volatile than the S&P 500 Index.
C) if the S&P 500 Index is up 10%, this stock can be expected to lose 8%.
D) the stock is riskier than the overall market.

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