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Assume the correlation coefficient between IBM and the market is 0.30. What percentage of IBM's total variance is idiosyncratic (i.e., firm-specific)? A. 70% B. 49%
Assume thecorrelationcoefficient between IBM and the market is 0.30. What percentage of IBM's total variance is idiosyncratic (i.e., firm-specific)?
A. 70% B. 49% C. 51% D. 79% E. 91%
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
