A stock with a beta greater than 1.0 has returns that are ________ volatile than the market, and a stock with a beta of less than 1.0 exhibits returns which are ________ volatile than those of the market portfolio.
A) more, more
B) more, less
C) less, more
D) less, less

Question

Quizplus · Accepted Answer

A stock with a beta greater than 1.0 is more volatile than the market, indicating that it will typically move more than the market. Conversely, a stock with a beta of less than 1.0 is less volatile than the market, meaning it will typically move less than the market.

A Stock with a Beta Greater Than 1