Which of the following statements about the beta coefficient is not true?
A)A beta of 1 implies that the stock's volatility is greater than that of the market.
B)A beta of
C)A beta of 1 implies a volatility equal to that of the market.
D)All of the above are true.

Question

Which of the following statements about the beta coefficient is not true?
A)A beta of > 1 implies that the stock's volatility is greater than that of the market.
B)A beta of
C)A beta of 1 implies a volatility equal to that of the market.
D)All of the above are true.

Quizplus · Accepted Answer

All the statements provided about the beta coefficient are true. A beta greater than 1 does imply greater volatility than the market, a beta of 1 implies equal volatility to the market, and thus, all the options are correct statements about the beta coefficient.

Which of the Following Statements About the Beta Coefficient Is