Question: What does it imply when a security ' s beta is larger than 1 ? Question 4 Answer a . All of the other three
What does it imply when a securitys beta is larger than
Question Answer
a
All of the other three options
cross out
b
The securitys covariance with the market portfolio is larger than the variance of the market portfolio
cross out
c
The security is riskier than the market portfolio
cross out
d
The securitys expected return is larger than the expected return of the market portfolio
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
