Vidyalelo
Management · Q763

Financial Management

Graduate and Post Graduate · Management · question 763

Q763

Type of risk in which beta is equal to one is classified as

A.
multiple risk stock
B.
varied risk stock
C.
total risk stock
D.
average risk stock
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Type of risk in which beta is equal to one is classified as average risk stock. An average-risk stock is defined as one that tends to move up and down in step with the general market.