Suppose the risk-free return (KRF) equals 5 percent, the required return on the market (kM) equals 11 percent and the required rate of return for Stock A (KA) equals 14.2 percent. Which of the following statements is most CORRECT? A. If the market were to go down 10 percent, Stock A would be expected to go down 20 percent. B. If the market were to go up 10 percent, Stock A would be expected to go down 15 percent. C. Stock A is not as risky as the overall stock market. D. The Market is roughly 53% more volatile than Stock A E. If the market were to go down 10 percent, Stock A would be expected to go down 15.33 percent.

Suppose the risk-free return ( kRF ) equals 5 percent, the required return on the market (kM) equals 11 percent and the required rate of return for Stock A(kA) equals 14.2 percent. Which of the following statements is most CORRECT? A. If the market were to go down 10 percent, Stock A would be expected to go down 20 percent. B. If the market were to go up 10 percent, Stock A would be expected to go down 15 percent. C. Stock A is not as risky as the overall stock market. D. The Market is roughly 53% more volatile than Stock A E. If the market were to go down 10 percent, Stock A would be expected to go down 15.33 percent