Given the historical information in the chapter, the beta of a small share should be greater than the beta of a corporate bond.

Question

Quizplus · Accepted Answer

Historical data shows that small shares (equities) generally have higher risk and higher volatility compared to corporate bonds. Beta measures an asset's sensitivity to market risk, and therefore, a small share is likely to have a higher beta compared to a corporate bond.

Given the Historical Information in the Chapter, the Beta of a Small