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Author Question: Which of the following statements is correct? (Read 9 times)

allihubbard

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Which of the following statements is correct?

The SML relates a stock’s required return to its market risk. The slope and intercept of this line cannot be controlled by the firms’ managers, but managers can influence their firms’ positions on the line. 


A stock with a beta of –1.0 has zero market risk if held in a one-stock portfolio.


Risk refers to the chance that some unfavourable event will occur, but a probability distribution is completely described by a listing of the likelihoods of favourable events.


When market risk has been diversified away, the inherent risk that remains is company-specific risk, which is different for all stocks in the market.



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Marked as best answer by allihubbard on Aug 7, 2023

dadgoere765

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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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allihubbard

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


gcook

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Reply 3 on: Yesterday
Wow, this really help

 

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