Multiple Choice
A beta coefficient for a stock of 0.8 implies
A) an 8% return on the market will cause the return on this stock to be 10%
B) an 8% decrease in the market will cause the return on this stock to be 8%
C) a return of 10% on the market will cause the return on this stock to be 8%
D) a return of 10% on the market will cause the return on this stock to be ‑8%
Correct Answer:
Verified
Correct Answer:
Verified
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