Question
Which of the following statements is NOT true regarding beta ? A: A stock with a beta of two will have a required return which
Which of the following statements is NOT true regarding beta?
A: A stock with a beta of two will have a required return which is twice as large as the expected return of the market.
B: A stock's risk premium depends upon its beta.
C: Beta increases as the correlation between the stock and the market increases.
D: Beta is the ratio of a firm's systematic risk to the overall risk of the market.
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Fundamentals Of Investments Valuation And Management
Authors: Bradford D Jordan, Thomas W. Miller Jr., Steven D. Dolvin
6th Edition
0073530719, 9780073530710
