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A stock has a market-beta of 1.23. This means that The stock is a less risky...

A stock has a market-beta of 1.23. This means that

The stock is a less risky investment than an investment in the overall stock market

If the general stock market is up 1.23%, this stock will be down 1.23%.

The stockʹs returns will vary much more than the returns of the overall stock market

None of the choices

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Answer #1

Stock market beta is generally considered to be 1, if any stock beta is lower than 1 than stock vary less than the market, if stock beta is greater than 1 then it will vary more than market,

the correct choice is

The stockʹs returns will vary much more than the returns of the overall stock market

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