Start learning →

For a stock like that, if the market falls 5 percent, the stock tends to fall:

AOne percent
BNothing at all
CTen percent
DFive percent
Answer & Solution
Correct answer: D. Five percent
1. The move matches the market. 2. Beta of one means one for one. 3. It falls five percent. _Source: OpenStax Principles of Finance 2e, Chapter 15, How to Think about Investing._
Practise this question with Quill — Canadian Securities Course (CSC) →

Keep practising Risk and Return

Browse all Risk and Return questions for Canadian Securities Course (CSC), or explore more Investments topics.

Start a Risk and Return lesson →
Related questions