Suppose that in the coming year, you expect SysCos stock to have a standard deviation of 30%
Question:
Suppose that in the coming year, you expect SysCo’s stock to have a standard deviation of 30% and a beta of 1.2, and UniCo’s stock to have a standard deviation of 41% and a beta of 0.6. Which stock carries more total risk? Which has more systematic risk?
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PLAN EXECUTE Total risk is measured by standard deviation therefore UniCos stock has more ...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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