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According to CAPM Beta can have many definitions. Please mark the only CORRECT one: a. If the covariance between stock B and the market is
According to CAPM Beta can have many definitions. Please mark the only CORRECT one:
a. | If the covariance between stock B and the market is 200 and the volatility of the market index is 20%, then Bs Beta will be 0.5 | |
b. | The higher the covariance between stock A and the market, the lower its Beta | |
c. | Beta measures the volatility of the stock | |
d. | Given a collection of 10 stocks, the one with the highest covariance with the market portfolio will be the one with the lowest variance |
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