Which of the following statements is true?

Question

Quizplus · Accepted Answer

Beta measures the volatility of a security return compared to the market, so statement A is true. Statement B is false as a beta of 1 indicates that the stock has the same volatility as the market, not more. Statement C is false as a portfolio of stocks can be assigned a beta. Statement D is also false as stocks with a beta lower than one would likely have a lower expected return as they are perceived as less risky. Therefore, only statement A is true.

Which of the Following Statements Is True