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The beta of security provides

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Reference no: EM132040399

1. The beta of a security provides:

A. estimate of the slope of the Security Market Line.

B. estimate of the market risk premium.

C. estimate of the impact of fixed costs on profit.

D. estimate of the systematic risk of the security.

E. estimate of the slope of the Capital Market Line.

2. An industry is likely to have a low beta if the: (Select all responses that apply.)

A. price per share tends to react much more to changes in the market than most other stocks.

B. market for their goods is unaffected by the market cycle.

C. economy is in a recession.

D. stream of revenues is stable and less volatile than the market.

E. company is a newer startup.

Reference no: EM132040399

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