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What can you infer about a stock that has a beta of 0.85 ? The standard deviation of the stock is expected to be 85.00
What can you infer about a stock that has a beta of 0.85?
The standard deviation of the stock is expected to be 85.00% of that of the market | ||
The covariance of the stock is 15.00% lower than the covariance of the market | ||
If the market falls by 1.00%, the stock is expected to fall by 0.85% | ||
The covariance between the stock and the market is less than zero | ||
Investors can expect a -15.00% greater/(lower) return on the stock than the overall market |
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