Multiple Choice
The index model for stock B has been estimated with the following result:RB = 0.01 + 1.1RM + eB.If σM = 0.20 and R2B = 0.50, the standard deviation of the return on stock B is
A) 0.1111.
B) 0.2111.
C) 0.3111.
D) 0.4111.
Correct Answer:
Verified
Correct Answer:
Verified
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