Individual common stocks' betas have a tendency to move toward 1.0 over time.

Name: Individual common stocks' betas have a tendency to move toward 1.0 over time.
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This is generally true because beta measures the systematic risk of a stock in relation to the overall market, which has a beta of 1.0. As time passes, the company's specific risk factors are likely to become less important in determining its stock price, and the stock's beta will converge toward 1.0.

Individual Common Stocks' Betas Have a Tendency to Move Toward