Question
Which of the following is correct? Group of answer choices a. The greater the beta of the stock, the higher the risk the stock has.
Which of the following is correct?
Group of answer choices
a. The greater the beta of the stock, the higher the risk the stock has.
b. The greater the standard deviation of the stock, the higher the risk the stock has.
c. A stock has a return correlation coefficient with the market return of 0.72 and it has a standard deviation of 30%, its beta is equal to 0.75 if the market portfolio has a standard deviation of 25%.
d. To find the beta of a stock, one can multiply the correlation coefficient between stock return and market return by the standard deviation of the stock return and divide the product by the standard deviation of the market return.
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