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Basic Question 0 of 22
If a stock has a beta less than 1.0, it means ______
B. an investor will earn a higher return on this stock than one on the market portfolio.
C. the stock's return is less volatile than the market portfolio.
A. an investor can eliminate market risk through diversification.
B. an investor will earn a higher return on this stock than one on the market portfolio.
C. the stock's return is less volatile than the market portfolio.
User Contributed Comments 2
| User | Comment |
|---|---|
| GouldenOne | ?????? |
| SKIA | GouldenOne -- Beta > 1 equals stock is more volatile than market; Beta < 1 equals stock is less volatile than market; Beta = 1 stock is as volatile as the market |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
calculate and interpret beta
CFA® 2026 Level I Curriculum, Volume 2, Module 2.