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Author Question: Stock A has a beta = 0.5, while Stock B has a beta = 1.5. Which of the following statements is correct? (Read 43 times)

llesku

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on: Aug 7, 2023

Question 1

Standard deviation is a measure of which of the following types of risk?

◦

nondiversifiable risk


◦

market risk


◦

combination risk 


◦

stand-alone risk



Question 2

Stock A has a beta = 0.5, while Stock B has a beta = 1.5. Which of the following statements is correct?

◦

Stock B’s required return is three times that of Stock A’s.


◦

If the marginal investor becomes more risk averse, the required return on Stock B will increase by less than the required return on Stock A.


◦

An equally weighted portfolio of Stocks A and B will have a beta higher than 1.


◦

If the risk-free rate increases but the market risk premium remains constant, the required return on Stock A will increase byas much asthat on Stock B.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by llesku on Aug 7, 2023

Tussalpain

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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llesku

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Reply 2 on: Aug 7, 2023
Excellent

nathang24

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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