Which of the following best describes the relationship between a stock's beta and the standard deviation of the stock's returns?
A) The higher the standard deviation, the higher the beta.
B) The higher the standard deviation, the lower the beta.
C) The relationship depends on the correlation between the stock's returns and the market's returns.
D) Standard deviation and beta are different ways of measuring the same thing.
Answer: C
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Jill wins a lawsuit against Terry in the Wyoming state court. The court passes a judgment for Terry to pay $20,000 to Jill. Immediately after the case is settled, Terry moves to Colorado, where she owns a house, and refuses to pay Jill the money
Which of the following is the best course of action for Jill? A) file a lawsuit against Terry in a Colorado state court to enforce the Wyoming court judgment B) file another case against Terry in the Wyoming state court to collect the money against Terry's property C) file a case against Terry in Wyoming to force Terry to sell her house in Colorado to pay the money D) file a case in the Colorado federal court as this qualifies as a federal question case
Gerentology Associates, a highly profitable company, is considering two growth strategies, one that
will achieve sales growth of 20% in one year, and the other that will achieve 20% growth in sales, but over a 4-year time frame. Assuming Gerentology Associates uses the percent of sales method, which of the following statements is true? A) Discretionary financing needed could be much greater for the slow growth strategy because interest charges will accumulate on the company's debt. B) The asset balances at the end of 4 years for strategy two will be much greater than the asset balances required at the end of year one for strategy one. C) Discretionary financing needed will be much greater for the 4-year growth strategy. D) Discretionary financing needed could be much less for the 4-year growth strategy due to retained earnings.