This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following statements regarding beta coefficient is correct? (Read 5 times)

mccallkeeler

  • Full Member
  • ***
  • Posts: 149
on: Aug 7, 2023
Which of the following statements regarding beta coefficient is correct?

◦

According to the definition of beta coefficient,a stock with a high standard deviation will tend to have a high beta, which means that it contributes a relatively large amount of risk to a well-diversified portfolio.


◦

The stand-alone risk of an individual stock, which is called its beta coefficient, b, is defined under the CAPM as the amount of risk that the stock contributes to the market portfolio.


◦

According to the definition of beta coefficient, a stock with a high correlation with the market will also have a small beta, and hence be less risky.


◦

We cannot obtain the beta coefficient based on the covariance between a stock and the market and the standard deviation of the market’s return.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by mccallkeeler on Aug 7, 2023

koung719

  • Full Member
  • ***
  • Posts: 164
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.
Answer Preview
Only 39% of students answer this correctly


mccallkeeler

  • Member
  • Posts: 149
Reply 2 on: Aug 7, 2023
:D TYSM

bassamabas

  • Member
  • Posts: 294
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Correct use of a fire extinguisher Correct use of a fire extinguisher
Sequential blending uses a computer to calculate the correct ratio as well as the prescribed order ... Sequential blending uses a computer to calculate the correct ratio as well as the prescribed order ...
Correct wrist position while performing compression. A. Correct wrist position for compression ... Correct wrist position while performing compression. A. Correct wrist position for compression ...
How to convert verbal statements into algebraic equations (Part 1) How to convert verbal statements into algebraic equations (Part 1)
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
Human beta-globin–complex locus control region Human beta-globin–complex locus control region
Video: Types of Transport - Uniport, Antiport and Symport (Glucose and Na+K+ Transporters)

For a complete list of videos, visit our video library