Question
which of the following statement is correct? a. the beta coefficient of a stock can be found by taking the rise over the run on
which of the following statement is correct?
a. the beta coefficient of a stock can be found by taking the rise over the run on a plot of past stock returns and past market returns.
b. if a stock were to have a beta of 1 then its required rate of return woukd be equal to rf. c the beta of a portfolio of stock is ways less than the betas of any individual stocks.
d. if you found a stock with zero historical beta and held it as the only stock in your portfolio you would have e riskless portfolio.
e. the beta of a portfolio of stock is always larger than the betas of any Individual stocks
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