Question
Assume the correlation coefficient between XYZ stock and the market index is 85%. What percentage of XYZ stock's total risk is specific (i.e., nonsystematic)? a.
Assume the correlation coefficient between XYZ stock and the market index is 85%. What percentage of XYZ stock's total risk is specific (i.e., nonsystematic)?
a. R2 of the regression: Blank 1. Fill in the blank, read surrounding text. %.
b. Non-systematic risk: Blank 2. Fill in the blank, read surrounding text. %.
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How Finance Works
Authors: Mihir Desai
1st Edition
1633696707, 978-1633696709
