n NISM Certifications
XV NISM Series XV
Medium

The beta of a stock more volatile than the market is likely to be:

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Below zero

  2. B

    Between zero and one

  3. C

    Exactly zero

  4. Greater than one

    Correct answer

Why this is the answer

Beta > 1 indicates the stock moves more than the market. Beta < 1 indicates less volatility; beta = 1 matches the market.

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