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The standard deviation of the stock of Tesla is equal to 16% and its beta coefficient is equal to 0.8. The beta coefficient of Tesla

The standard deviation of the stock of Tesla is equal to 16% and its beta coefficient is equal to 0.8. The beta coefficient of Tesla is equal to 1.2. Assume the risk-free interest rate is equal to 0%. What can you say about the standard deviation of Tesla stock return?

Question 12 options:

It is equal to 24%

It is equal to 36%

It is at least 16%, but it is neither 24% nor 36%

None of the above

The expected return on the stock of Tesla is equal to 14% and its beta coefficient is equal to 0.8. Find the expected return on the stock of Tesla if its beta coefficient is equal to 1.2 and the risk-free interest rate is 5%

Question 13 options:

9.3%

18.5%

21%

Cannot be determined from the available information.

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