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Which of the Following About Beta Coefficient Is Incorrect

Question 63

Multiple Choice

Which of the following about beta coefficient is incorrect?


A) A stock of beta 1.25 indicates the share price will perform 25% better than the overall market when prices are rising.
B) A stock of beta 1.25 indicates the share price will perform 25% worse than the overall market when prices are falling.
C) A stock with a beta of 1.25 will move more than a stock with a beta of 1.25.
D) A stock with a beta of 0.50 will rise at only half the rate at which the overall market index will rise.

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