A stock's beta is a measure of its A) diversifiable risk. B) ...

[ssal]

A stock's beta is a measure of its
 
  A) diversifiable risk. B) systematic risk.
  C) unsystematic risk. D) company-unique risk.

Question 2

Gaston Grooming Inc., has a sustainable growth rate of 17.28. If the retention ratio is .60, the leverage ratio is 1.2 and the asset turnover ratio is 1.6, what was the firm's profit margin?
 
  A) 15.0
  B) 13.6
  C) 12.1
  D) 11.4

[Sweetkitty24130]

Answer to Question 1

B

Answer to Question 2

A
Explanation: A) PM = SGG/(ATO  LR  b) = 17.28/(1.6  1.2  .60 ) = 15.0