Which of the following statements is true? A. A stock with a beta less than 1.0...

Question

Question

Which of the following statements is true?

A.

A stock with a beta less than 1.0 has lower nondiversifiable risk than a stock with a beta of 1.0.

B.

A stock with a beta greater than 1.0 has lower nondiversifiable risk than a stock with a beta of 1.0.

C.

A stock with a beta less than zero has no exposure to systematic risk.

D.

A stock with a beta less than 1.0 has higher nondiversifiable risk than a stock with a beta of 1.0.

Answer 1

Answer #1

Answer: Option A is correct
A stock with a beta less than 1.0 has a lower nondiversifiable risk than a stock with a beta of 1.0

Answer 2

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