Which of the following is true concerning beta?
A) The beta assigned to the overall market is zero
B) A stock with a beta of 1.2 earns a lower risk premium than does the overall market
C) A stock with a beta of 0.5 has 50% more risk than the overall market
D) A stock with a beta of 1.1 has a risk premium that is greater than the market risk premium
E) The higher the beta, the lower the market risk
Correct Answer:
Verified
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