The higher an asset's beta, A) The less responsive it is to changing market returns. B) The

Question:

The higher an asset's beta,
A) The less responsive it is to changing market returns.
B) The more responsive it is to changing market returns.
C) The higher the will be in a down market.
D) The lower the will be in an up market.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...