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Suppose you estimate that the stock of Company A (stock A ) has a volatility of 5% and a beta of 1.1, and the stock
Suppose you estimate that the stock of Company A (stock A ) has a volatility of 5% and a beta of 1.1, and the stock of company B (Stock B) has a volatility of 20% and a beta of 0.4. The volatility is the standard deviation of the stock's return. Mark all the correct statements below. Company A has a higher equity cost of capital than company B. Stock A has more total risk than Stock B. Stock A has more market (systematic) risk than Stock B
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