Question: Assume that the % expected return for security A and the market M for a good, normal and bad economy (probabilities.3.4.3) are 20, 16, and

 Assume that the % expected return for security A and the
market M for a good, normal and bad economy (probabilities.3.4.3) are 20,
16, and 10 for A and 8, 4, and 12 for M.

Assume that the % expected return for security A and the market M for a good, normal and bad economy (probabilities.3.4.3) are 20, 16, and 10 for A and 8, 4, and 12 for M. Also assume that you invest 40% in A and 60% in M. Compute the standard deviation for A. O 15.4 O 3.90 O 3.32 0 -7.44 What type of risk can be eliminated in a well diversified portfolio? systematic O market undiversifiable company specific A decrease in a firm's beta would have what effect on the firm's stock price holding all other variables constant. Increase Decrease No Change None of the above

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