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Author Question: Which of the following is the correct interpretation of the slope of the characteristic line? (Read 39 times)

fagboi

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Question 1

Warren has a portfolio with three stocks as shown in the table. What is the beta of Warren's portfolio?

StockRequired ReturnPortfolio WeightBeta
Raymond's6.75%0.40.50
Keller Industries11.43%0.351.50
Huron Power9.27%0.251.05

◦ 0.775
◦ 0.988
◦ 1.017
◦ 1.340
◦ 1.505

Question 2

Which of the following is the correct interpretation of the slope of the characteristic line?
◦ The return on the stock when the market return is zero.
◦ The change in the return on the stock when the market return changes by 1.
◦ The return on the stock when the market return is 1%.
◦ The change in the market return per unit change of the stock return.


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Marked as best answer by fagboi on Apr 25, 2021

covalentbond

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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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fagboi

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it


Dnite

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Reply 3 on: Yesterday
Wow, this really help

 

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