In the CAPM, Group of answer choices A. larger the value of β for a stock,...
In the CAPM,
Group of answer choices
A. larger the value of β for a stock, larger is the unsystematic risk involved in investing in the stock.
B. larger the value of β for a stock, smaller is the unsystematic risk involved in investing in the stock.
C. larger the value of β for a stock, larger is the systematic risk involved in investing in the stock.
D larger the value of β for a stock, smaller is the systematic risk involved in investing in the stock.
Homework Answers
Answer: Option C is correct.
Beta is a measure of systematic risk or market risk.
So, larger the beta, larger will be the systematic risk involved in
investing in the stock
Add Answer to:
In the CAPM,
Group of answer choices
A. larger the value of β for a stock,...
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Stock X has systematic risk of β = 1 and the analyst forecasts its return to be 12%. Stock Y has β = 1.5 and a forecast...
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Which of the following statements is FALSE? Group of answer choices A large stock is typically...
Which of the following statements is FALSE?
Group of answer choices A large stock is typically more volatile
than a portfolio of large stocks. Investors would not choose to
hold a portfolio that is more volatile unless they expected to earn
a higher return. Smaller stocks have lower volatility than larger
stocks.
Question 3 1 pts Which of the following statements is FALSE? O A large stock is typically more volatile than a portfolio of large stocks. O Investors would...
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Which of the following statements is FALSE?
Group of answer choices A large stock is typically more volatile
than a portfolio of large stocks. Investors would not choose to
hold a portfolio that is more volatile unless they expected to earn
a higher return. Smaller stocks have lower volatility than larger
stocks.
Question 3 1 pts Which of the following statements is FALSE? O A large stock is typically more volatile than a portfolio of large stocks. O Investors would...
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