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Based on the CAPM, which one of the following statements is correct regarding risky stocks? Question 1 options: The stock's expected return is determined by
Based on the CAPM, which one of the following statements is correct regarding risky stocks?
Question 1 options:
The stock's expected return is determined by its firm specific risk. | |
The stocks total risk is measured by its Beta. | |
The stock's standard deviation () measures its systematic risk. | |
The stock's firm specific risk can be reduced by diversification of investments. |
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