Ask Experts Questions for FREE Help !
Ask
    Nickhp44's Avatar
    Nickhp44 Posts: 4, Reputation: 1
    New Member
    		  
    #1

    May 13, 2012, 07:37 PM
    Beta Coefficient Q's
    These two questions I am almost positive my answer is correct, but it can't hurt to make sure :)

    (1)
    A beta coefficient for a risky stock is (ANSWER: C)
    A. Less than 1.0
    B. Equal to 1.0
    C. Greater than 1.0
    D. Negative

    It's got to be C because the more volatile the stock (>1), the more risky, correct?

    &

    (2)
    A beta coefficient of 1.2 implies (ANSWER A)

    1. The stock is more risky than the market
    2. The stock's return is 1.2 times the return on the market
    3. The stock is less risky than the market
    4. The market's return is 1.2 times the return on the stock

    A. 1 and 2
    B. 1 and 4
    C. 2 and 3
    D. 3 and 4

    Thanks for your help!

Check out some similar questions!

Beta Coefficient Q's [ 1 Answers ]

These two questions I am almost positive my answer is correct, but it can't hurt to make sure :) (1) A beta coefficient for a risky stock is (ANSWER: C) a. less than 1.0 b. equal to 1.0 c. greater than 1.0 d. negative It's got to be C because the more volatile the stock (>1), the more...

Beta coefficient [ 1 Answers ]

A beta coefficient is an index of an asset's unsystematic risk

Beta Coefficient [ 1 Answers ]

Given the following information, ra = 14.7%; rrf = 5.25%; rm = 12%, calculate the beta coefficient for Stock A that would be consistent with equilibrium. Explain why this represents equilibrium.

Beta Coefficient [ 1 Answers ]

Given the following information, determine the beta coefficient for Stock J that is consistent with equilibrium: rj = 12.5%; rfr =4.5%; rm = 10.5%.

View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.