A stock with a Beta greater than 1.0 would be termed:
A)an aggressive stock, expected to increase more than the market increases.
B)a defensive stock, expected to decrease more than the market increases.
C)an aggressive stock, expected to decrease more than the market increases.
D)a defensive stock, expected to increase more than the market decreases.

Question

Quizplus · Accepted Answer

A Beta greater than 1.0 means the stock is more volatile than the overall market and is expected to increase more than the market increases, making it an aggressive stock.

A Stock with a Beta Greater Than 1