Question
Stock A's return has a standard deviation of 0.3, and a beta of 1.3, while Stock B's return has a standard deviation of 0.4, and
Stock A's return has a standard deviation of 0.3, and a beta of 1.3, while Stock B's return has a standard deviation of 0.4, and a beta of 0.8. Which stock has a higher idiosyncratic risk?
A and B have the same amount of idiosyncratic risk
Stock A
Not determined
Stock B
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International Financial Management
Authors: Jeff Madura
2nd Edition
0314430296, 978-0314430298
