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In a Stock Market, a Riskier Stock Typically Has

Question 155

Multiple Choice

In a stock market, a riskier stock typically has:


A) a higher covariance with the market as a whole.(True Answer ) Correct
B) a lower covariance with the market as a whole.
C) a higher correlation with some stocks and a lower correlation with other stocks.
D) a lower correlation with the market as a whole.

Correct Answer:

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