If the slope of the line measuring a stock's historic returns against the market's historic returns is positive, then the stock:
A) has a beta greater than 1.0.
B) has no unique risk.
C) has a positive beta.
D)plots above the security market line.

Question

Quizplus · Accepted Answer

A positive slope indicates that the stock has a positive correlation with the market, which means that the stock's returns move in the same direction as the market's returns. This is indicative of a positive beta, which signifies that the stock tends to be more volatile than the market as a whole.

If the Slope of the Line Measuring a Stock's Historic