Suppose the CAPM holds. The proportion of a stock's return variance which is idiosyncratic is 60%....
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Suppose the CAPM holds. The proportion of a stock's return variance which is idiosyncratic is 60%. What is the correlation between the excess returns on the stock and the market, to 2 decimal places? Suppose the CAPM holds. The proportion of a stock's return variance which is idiosyncratic is 60%. What is the correlation between the excess returns on the stock and the market, to 2 decimal places?
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If the CAPM holds the total risk of a stocks return can be divided into two components systematic ri... View the full answer
Related Book For
Statistics For Business Decision Making And Analysis
ISBN: 9780321890269
2nd Edition
Authors: Robert Stine, Dean Foster
Posted Date:
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