Question
Suppose the beta estimated from the CAPM for stock A is 2.3 and stock B is 1.1. Which of the following is true? None of
Suppose the beta estimated from the CAPM for stock A is 2.3 and stock B is 1.1. Which of the following is true?
| None of the aboveAnswer | ||
| The beta of the equally weighted portfolio of stock A and B is 1.2 | ||
| According to the CAPM, the required rate of return of stock B is higher
| ||
| According to the CAPM, stock A has a higher idiosyncratic risk |
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Principles Of Finance
Authors: Scott Besley, Eugene F. Brigham
3rd Edition
0324232624, 9780324232622
