The beta for the S&P 500 is:
A)0
B)1.0
C)10.0
D)50.0
E)100.0

Question

Quizplus · Accepted Answer

A beta of 1.0 indicates that the stock's price will move in line with the S&P 500. A beta higher than 1.0 indicates that the stock is more volatile than the market, and a beta lower than 1.0 indicates that the stock is less volatile than the market. A beta of 0 means that the stock's price is not correlated with the S&P 500. Betas above 1.0 are considered riskier, while betas below 1.0 are considered less risky. Therefore, the best choice is B)1.0.

The Beta for the S&P 500 Is