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