We know beta is a company-specific risk index

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We know “BETA” is a company-specific risk index. Which of the following is not true?

1) It is a financial index that indicates the level of the volatility of one company’s stock price in the market.

2) If the Beta of a company is larger than 1, the company’s stock performance is considered more volatile than that of the market.

3) Since Beta is a company specfic risk-index, it can be controlled and maintained internally by the management of a company.

4) Companies whose stocks are growing faster than the entire market (or economy) usually carry lower beta values due to their growth potential.

Reference no: EM131552292

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