Question: We know the following expected returns for stocks A and B , given different states of the economy: The expected return on the market portfolio
We know the following expected returns for stocks A and given different states of the
economy:
The expected return on the market portfolio is and the riskfree rate is
In decimal places, what is the beta for stock A and what is it for B
Which stock has more total risk The stock with higher standard dev, the stock with lower beta, the stock with lower standard dev, or the stock with the hgiher beta
Which stock has more systematic risk The stock with the lower standard deviation, the stock with the lower beta, the stock with the higher beta or the stock with the higher standard dev?
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