If a security's beta is 1.5 and the market return is expected to increase 20%,the security's return should increase 21.5%.

Name: If a security's beta is 1.5 and the market return is expected to increase 20%,the security's return should increase 21.5%.
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

The security's return should increase by 30% (1.5 * 20%) because the beta indicates how much the security's return is expected to change in response to a change in the market return.

If a Security's Beta Is 1