Series 7 - General Securities Representative Exam

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A stock's Beta is 1.36 and its Alpha is 0.31. It is also part of the Russell 2000 Index. Which of the following types of stock is it MOST likely to be?

A National Bank
A
Large Cap Industrial Company
B
Private REIT
C
Small Cap Technology Company
D

Explanations

The Russell 2000 is an index comprised of small cap stocks. A national bank is a large cap stock and so is the large cap industrial company. Private REITs are not registered and do not trade on national exchanges

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