For a stock with beta equal to 1.5 signifies that the stock has 50% more systematic risk than the average stock.

Name: For a stock with beta equal to 1.5 signifies that the stock has 50% more systematic risk than the average stock.
Brand: Quizplus
Rating: 4.7 (35 reviews)

Question

Quizplus · Accepted Answer

A beta of 1.5 indicates that the stock is expected to move 50% more than the market. If the market goes up or down, this stock is expected to go up or down by 1.5 times that amount, reflecting higher systematic risk compared to the average stock (which has a beta of 1).

For a Stock with Beta Equal to 1