Question
Suppose that a stock return is perfectly positively correlated with the market return. Which of the followings is not correct about the security characteristic line
Suppose that a stock return is perfectly positively correlated with the market return. Which of the followings is not correct about the security characteristic line (SCL) of the stock?
Group of answer choices
The stock's systematic risk is less than its total risk
All the data points lie exactly on the SCL
The SCL is upward sloping
The model perfectly fits the data
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
5th Edition
0131445650, 9780131445659
