Question
Suppose market return can be +10% or -10% with equal probability. When market return is +10%, stock A returns +5%. When market return is -10%,
Suppose market return can be +10% or -10% with equal probability.
When market return is +10%, stock A returns +5%.
When market return is -10%, stock A returns -5%.
What is the beta of stock A?
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Global Banking
Authors: Roy C Smith, Ingo Walter, Gayle DeLong
3rd Edition
0195335937, 9780195335934
