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Basic Question 3 of 11
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 just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
calculate and interpret beta
CFA® 2025 Level I Curriculum, Volume 2, Module 2.