Here are 3 explanations to show the characteristics of a company which has β of above 1 (one).  Choose an wrong answer. The volatility of the stock prices is higher than average companies. The volatility of the sales and profit  is lower than average companies. The industry which the company belongs to tends to have higher volatility of sales and profit than average industries

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A: A break-even analysis is a financial tool

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A: The answer for the multiple choice question and relevant explanation are presented hereunder :

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A: Answer

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