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Homework answers / question archive / When a beta for a company is less than one means   1

When a beta for a company is less than one means   1

Finance

When a beta for a company is less than one means

  1.

the stock market have beta more than one
  2.

the company's stock increase's by the same percentage as the market.
  3.

The company is more risky than the market.
  4.

If the stock market increae by 1%, the company's stock increase by less than 1%.

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Beta of the Company is 1 means if the stock market incraeses by 1%, Company share price is increases by same 1%

Beta of the Company is less than one means if the stock market incraeses by 1%, Company share price is increases by less than 1%

Beta of the Company is greater than 1 means if the stock market incraeses by 1%, Company share price is increases by than 1%

Here Beta of the company is less than one means , if the stock market increases by 1% , the company stock incresases by less than 1%. So option 4 is correct.

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