A firm has an equity beta of 1.3. Compared with the average stock, its…

Question

A firm has an equity beta of 1.3. Compared with the average stock, its systematic risk is:

Accepted Answer

D. Higher

1. The average beta is one.
2. This beta is above that.
3. Its risk is higher.
_Source: OpenStax Principles of Finance 2e, Chapter 17, How Firms Raise Capital._

Answer

Equal

Answer

Zero

Answer

Lower

A firm has an equity beta of 1.3. Compared with the average stock, its systematic risk is:

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