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6. Assume A is correctly priced by CAPM. Whenever the market moves down 2%, stock A moves down, on average, by 2.5%. How does
6. Assume A is correctly priced by CAPM. Whenever the market moves down 2%, stock A moves down, on average, by 2.5%. How does the beta of stock A compare to the beta of the market as a whole? Explain.
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Based on the given information we can conclude that the beta of stock A is greater than 1 Th...
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Statistics For Business Decision Making And Analysis
Authors: Robert Stine, Dean Foster
2nd Edition
978-0321836519, 321836510, 978-0321890269
