- CFA Exams
- CFA Level I Exam
- Study Session 18. Portfolio Management (1)
- Reading 53. Portfolio Risk and Return: Part II
- Subject 2. Pricing of Risk and Computation of Expected Return
CFA Practice Question
In the CAPM, a beta greater than 1 means that ______
A. if the stock market rises by 1%, the individual stock will rise by more than 1%.
B. the stock price will be higher than the 30-year Treasury bond interest rate.
C. the market return will be greater than 1%.
User Contributed Comments 1
| User | Comment |
|---|---|
| DylanEeles | just because it has a beta of greater than 1 does not guarantee any returns? It is only expected to return greater than the market? |