1. A security with a beta of zero implies that all of the variability in this...
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1. A security with a beta of zero implies that all of the variability in this security's return is diversifiable by any investor holding a well- diversified portfolio. II. A security with a beta of 1 implies that if the market increased (or decreased) by 1%, the return on the security would increase (decrease) by more than 1% on average. III. A security that has a beta value cannot be priced. I is correct, II and III are incorrect. OI, II and III are incorrect. I, II and III are correct. I, II are incorrect, III is correct. 1. A security with a beta of zero implies that all of the variability in this security's return is diversifiable by any investor holding a well- diversified portfolio. II. A security with a beta of 1 implies that if the market increased (or decreased) by 1%, the return on the security would increase (decrease) by more than 1% on average. III. A security that has a beta value cannot be priced. I is correct, II and III are incorrect. OI, II and III are incorrect. I, II and III are correct. I, II are incorrect, III is correct.
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Related Book For
Fundamentals of Financial Management
ISBN: 978-0324302691
11th edition
Authors: Eugene F. Brigham, ? Joel F. Houston
Posted Date:
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