Stocks with low beta coefficients have higher required rates of return.

Name: Stocks with low beta coefficients have higher required rates of return.
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Question

Stocks with low beta coefficients have higher required rates of return.​

Quizplus · Accepted Answer

This statement is false. Stocks with low beta coefficients are generally considered to be less risky than stocks with high beta coefficients. As a result, investors may require a lower rate of return for low beta stocks, as they are perceived to be less volatile and more stable.

Stocks with Low Beta Coefficients Have Higher Required Rates of Return.​

Stocks with Low Beta Coefficients Have Higher Required Rates of Return.