Stocks with high betas will have low price volatility.

Name: Stocks with high betas will have low price volatility.
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Question

Quizplus · Accepted Answer

The statement is false. Stocks with high betas actually have higher price volatility, as they are more sensitive to market movements. Betas measure the degree of correlation between a stock's returns and the market's returns. A beta greater than 1 indicates that a stock is more volatile than the overall market, while a beta less than 1 indicates that it is less volatile than the market.

Stocks with High Betas Will Have Low Price Volatility