Question
Here is data of stock A and Stock B in the table below: Stock Standard Deviation Beta A 35% 0.9 B 37% 0.5 1) Which
Here is data of stock A and Stock B in the table below:
| Stock | Standard Deviation | Beta |
| A | 35% | 0.9 |
| B | 37% | 0.5 |
1) Which stock has a higher total risk (stand-alone) risk? How much is it? 2) Which stock has a higher market risk? How much is it? 3) Which stock would have a higher required return? Why?
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Applied Quantitative Finance
Authors: Härdle
3rd Edition
3662544857, 978-3662544853
