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If the Beta for a stock is 1.6, which of the following is true? A, The stock is risky and you can eliminate that risk
If the Beta for a stock is 1.6, which of the following is true?
A, The stock is risky and you can eliminate that risk by combining it with other high Beta assets.
B, The stock is risky and you can eliminate it by combining it with a negatively correlated asset with Beta=1.6.
C, The stock is risky and that risk is systematic.
D, The stock is safe and you should leverage your position to increase returns.
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