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If a stock consistently goes down (up) by 1.58% when the market portfolio goes down (up) by 1.11%, then calculate its beta.
If a stock consistently goes down (up) by 1.58% when the market portfolio goes down (up) by 1.11%, then calculate its beta.
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SOLUTION The beta of a stock measures the sensitivity of its returns to the returns of the market portfolio It is defined as the covariance between th...
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
