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Company J has returned 15% p.a. over the past five years, versus p.a. returns of 13% and 6.5% for the equity market and Treasury Bills,
Company J has returned 15% p.a. over the past five years, versus p.a. returns of 13% and 6.5% for the equity market and Treasury Bills, respectively. You run a linear regression and determine Company J's stock exhibited a beta of 1.25 and idiosyncratic variance of .004.
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Based on the information provided we can glean several insights about Company Js stock Outperformance and Beta Outperformance Company Js historical return of 15 pa outperforms both the equity market 1...
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Principles of Auditing and Other Assurance Services
Authors: Ray Whittington, Kurt Pany
19th edition
978-0077804770, 78025613, 77804775, 978-0078025617
