Shares with a beta greater than 1.0 have returns that are [blank] volatile than the market, and shares with a beta of less than 1.0 exhibits returns which are [blank] volatile than those of the market portfolio.
A)more, more
B)more, less
C)less, more
D)less, less

Question

Quizplus · Accepted Answer

Shares with a beta greater than 1.0 are more volatile than the market, indicating they will likely move more significantly in response to market changes. Conversely, shares with a beta of less than 1.0 are less volatile, meaning they are likely to experience smaller fluctuations compared to the overall market.

Shares with a Beta Greater Than 1