Question: You are using the Capital Asset Pricing Model (CAPM) to analyze a share of common stock. Your research tells you that the stocks beta is

You are using the Capital Asset Pricing Model (CAPM) to analyze a share of common stock. Your research tells you that the stocks beta is = +1.54. What does this tell you about the stock that you are analyzing?

A. The stock returns move together with the market overall.

B. The stock returns move opposite from the market overall.

C. The stock is riskier than the market overall.

D. Both A and C are true of the stock.

E. Both B and C are true of the stock.

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