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Camber Seal is a financial planner hired to review KMB stock. She is considering the CAPM where the KMB risk - adjusted stock return R
Camber Seal is a financial planner hired to review KMB stock. She is considering the CAPM where the KMB riskadjusted stock return R Rf is used as the response variable and the riskadjusted market return Rm Rf is used as the predictor variable. KMB stock is considered staple products, whether the economy is good or bad. Given estimates for the beta coefficient is standard error of and a pvalue of with a formulated hypothesis of H : beta HA : beta At a significance level, what is the risk determination of the stock against the market?Camber Seal is a financial planner hired to review KMB stock. She is considering the CAPM where the KMB riskadjusted stock return is used as the response
variable and the riskadjusted market return is used as the predictor variable. KMB stock is considered staple products, whether the economy is good or bad.
Given estimates for the beta coefficient is standard error of and a value of with a formulated hypothesis of :: At a
significance level, what is the risk determination of the stock against the market?
Multiple Choice
is significantly less than one, thus, : is rejected and less risky than the market.
is significantly higher than one, thus, : is accepted and less risky than the market.
is significantly less than one, thus, : is accepted and riskier than the market.
is significantly higher than one, thus, : is rejected and riskier than the market.
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