A beta of 1.1 means that for a given 1 percent change in the value of the market, the _______ is expected to change by 1.1 percent in the same direction.
A)risk-free rate
B)stock's value
C)stock's standard deviation
D)correlation coefficient

Question

Quizplus · Accepted Answer

A beta of 1.1 indicates that the stock's value is expected to move 1.1% in the same direction as the market for a given 1% change in the market. Beta measures the volatility of a stock relative to the overall market.

A Beta of 1