Which of the following statements is true?
A)An average stock has a beta of 1.0.
B)A stock having a beta of greater than 1.0 is a higher-than-average-risk stock.
C)A stock having a beta of less than 1.0 is a lower-than-average-risk stock.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

A) An average stock has a beta of 1.0, meaning that its price movements are similar to that of the overall market.
B) A stock with a beta greater than 1.0 is considered riskier than the market as a whole, as it is expected to have greater price fluctuations.
C) A stock with a beta less than 1.0 is considered less risky than the market as a whole, as it is expected to have smaller price fluctuations.
Therefore, all of the statements are true.

Which of the Following Statements Is True