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 stock with a beta greater than 1.0 is considered an aggressive stock, meaning that it is expected to increase more than the market increases. This is because it has a higher level of volatility or risk compared to the overall market.

A Stock with a Beta Greater Than 1