This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements regarding beta coefficient is correct? (Read 38 times)

mccallkeeler

  • Full Member
  • ***
  • Posts: 149
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.



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
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
YES! Correct, THANKS for helping me on my review


DylanD1323

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

For a complete list of videos, visit our video library