A stock dividend differs from a stock split because in a stock split, the par value of the company's
stock is reduced, while the par value remains the same after a stock dividend is paid.
Indicate whether the statement is true or false
Question 2
Which of the following statements concerning beta is correct?
A) Its calculation is unnecessary and too complicated to be used efficiently.
B) The risk free asset is equal to 1.
C) The portfolio beta is the sum of the single asset betas.
D) It measures the amount of systematic risk possessed by an individual asset.
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