The latest hot stock has a beta of 1.5. If the returns on the market increase by 4 percent, you should expect the price of the latest hot stock to go:
A) up 6%
B) up 5.5%
C) down 4%
D) down 5.5%
E) down 6.0%

Question

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The Answer of The latest hot stock has a beta of 1.5. If the returns on the market increase by 4 percent, you should expect the price of the latest hot stock to go:
A) up 6%
B) up 5.5%
C) down 4%
D) down 5.5%
E) down 6.0%

The Latest Hot Stock Has a Beta of 1