A stock with a beta of 0.8 is _______ risky than the market and will _______ when the market changes. Reminder: Beta = change in stock / change in market.....what would cause this fraction to be less than 1....a smaller or larger change in the stock when the market changes....is that an underreaction or overreaction? Less; overreact Less; underreact More; overreact More; underreact
A stock with a beta of 0.8 is _______ risky than the market and will _______ when the market changes. Reminder: Beta = change in stock / change in market.....what would cause this fraction to be less than 1....a smaller or larger change in the stock when the market changes....is that an underreaction or overreaction? Less; overreact Less; underreact More; overreact More; underreact
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A stock with a beta of 0.8 is _______ risky than the market and will _______ when the market changes. Reminder: Beta = change in stock / change in market.....what would cause this fraction to be less than 1....a smaller or larger change in the stock when the market changes....is that an underreaction or overreaction?
Less; overreact
Less; underreact
More; overreact
More; underreact
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