Question
Two shares, each paying a $ 1 dividend that will grow 8% annually. Stock A has a beta of 1.3; the beta of Stock B
Two shares, each paying a $ 1 dividend that will grow 8% annually. Stock A has a beta of 1.3; the beta of Stock B is beta 0.8. Which of the two stocks is more volatile?
1. Action A
2. Action B
3. None
4. They are both equally volatile
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
