Suppose stock X has a beta of 2.5 and stock Y has a beta of 0.5. From this we can conclude that X has:
A. 5 times the nondiversifiable risk of the market portfolio.
B. 5 times the nondiversifiable risk of Y.
C. 2.5 times the nondiversifiable risk of Y.
D. 2.5 times the diversifiable risk of the market portfolio.
B. 5 times the nondiversifiable risk of Y.
Economics
You might also like to view...
The amount a firm receives after all costs have been paid.
a. Marginal Revenue b. Marginal Profit c. Profit d. Revenue
Economics
Which of the following creates an obstacle to pursuing freer international trade?
a. Consumers do not recognize their potential gains b. Losses are widespread c. Domestic producers do not recognize their potential losses d. Government has plenty of political will and support to remove trade barriers e. Consumers can easily organize to demand free trade
Economics