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Holding all else equal, what can be said about a stock or portfolio of stocks with a Beta of 1.2.2 1) It has no systematic ri
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Answer #1

The correct answer will be option 2 i.e. it is more volatile than the overall market.

Beta signifies the risk of stock in relation to the market. Hence beta of 1.2 means that the risk of stock is 1.2 and the risk of market is 1. And thus answer is 2

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