Given the range of betas on actual companies reported in Table 11.7, a very low beta would be ___, and a very high beta would be _____ in comparison.
A) 1.00; 1.00
B) .86; .96
C) .22; 2.29
D) 1.08; 1.08
E) .37; 1.58

Question

Quizplus · Accepted Answer

The range of betas in Table 11.7 is from 0.22 to 2.29. Therefore, a very low beta would be 0.22 or lower (such as 0.10 or 0.05), and a very high beta would be 2.29 or higher (such as 3.00 or 4.00). Option C is the only choice that includes the lowest and highest beta values in the range.

Given the Range of Betas on Actual Companies Reported in Table