Question: If a stock has beta 1.0, how to interpret it? ______ The stock is riskier than average. The stock has average risk. The stock is

If a stock has beta 1.0, how to interpret it? ______

The stock is riskier than average.

The stock has average risk.

The stock is less risky than average.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

If a stock has beta 1.0, how to interpret it? A. The stock is riskier than average. B. The stock has average risk. C. The stock is less risky than average.

Q:

A firms optimal capital structure ______ is generally a mix of 40% debt and 60% equity. exists when the debt-equity ratio is 0.5. is the debt-equity ratio that exists at the point where the firms...

Q:

11. Which of the following statements is CORRECT? a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio. b. If you were...

Q:

Betas: Stock Volatility Conceptual Overview: Explore how stock volatility relates to the beta coefficient b risk measure. The tendency of a stock to move with the market is measured by its beta...

Q:

Betas: Stock Volatility Conceptual Overview: Explore how stock volatility relates to the beta coefficient b risk measure. The tendency of a stock to move with the market is measured by its beta...

Q:

1. Exploring Finance; Betas and Stock Volatility. (Only 1 attempt, Not 3) Betas: Stock Volatility Conceptual Overview: Explore how stock volatility relates to the beta coefficient b risk measure. The...

Q:

Conceptual Overview: Explore how stock volatility relates to the beta coefficient b risk measure. The tendency of a stock to move with the market is measured by its beta coefficient, b. When first...

Q:

Return on Stocks 30% 20% b = 1.00 1095 Return on Markel 1. For a stock with a beta coefficient of b = 1.50, it is 3. more volatile than the average stock b. about the same volatility of an average...

Q:

A firm has a Beta of 1 . 6 . The market return is measured as 8 . 5 % and the risk free rate is 1 . 7 5 % What type of industry might this company be in ? Recreational Vehicle Manufacturing...

Q:

Consider the following information on Stocks I and II: State of Economy Recession Normal Irrational exuberance Rate of Return if State Occurs Probability of State of Economy Stock I Stock II .15 .05...

Q:

Bruno Industries expects credit sales for January, February, and March to be $200,000, $260,000, and $310,000, respectively. It is expected that 70% of the sales will be collected in the month of...

Q:

Below are a job ad and a rsum applying for that job. Using the information you have about Jennifers two jobs (given below the rsum), critique Jennifers rsum. Her job letter is Exercise 13.18, if you...

Q:

Select all that apply Which of the following are not considered angel investors? A group of individuals with little experience backing start - up companies. Individuals with little knowledge of the...

Q:

SIMAD UNIVERSITY Class: BACC25 Subject: Islamic Accounting Instructions: a) Follow The Instructions. Midterm Exam Instructor: All Ibrahim Date: 6-4-2022 b) You Have 1.5 Hrs. To Complete This Test. c)...

Q:

Carefully consider the appropriate measurement methods in given situations and be conscious of their shortcomings.

Q:

Carry out an interview and review its success.

Q:

Identify the issues involved in the choices that organisations make in their relationships with their employees.