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When a beta for a company is less than one means 1
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%. |
Expert Solution
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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