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Management · Q784

Financial Management

Graduate and Post Graduate · Management · question 784

Q784

Stock which has higher correlation with market tend to have

A.
high beta, less risky
B.
low beta, more risky
C.
high beta, more risky
Answer
D.
low beta, less risky

Answer: Option C

Solution

Answer: Option C
Solution:
Stock which has higher correlation with market tend to have high beta, more risky. High-beta stocks tend to be riskier but provide the potential for higher returns.