Question
You have the following information about a stock. Answer the following questions with calculations. Standard deviation beta A 25% 2.2 B 25% 1.2 a) Which
You have the following information about a stock. Answer the following questions with calculations.
|
| Standard deviation | beta |
| A | 25% | 2.2 |
| B | 25% | 1.2 |
a) Which stock has the higher total risk? (1 mark) b) Which stock has the higher systematic risk? (1 mark) c) Which stock will have the lower expected return? (1 mark)
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The Principals Guide To School Budgeting
Authors: Richard D. Sorenson, Lloyd M. Goldsmith
3rd Edition
1506389457, 978-1506389455
