Multiple Choice
The index model for stock A has been estimated with the following result:
RA = 0.01 + 0.9RM + eA
If σM = 0.25 and R2A = 0.25,the standard deviation of return of stock A is _________.
A) 0.2025
B) 0.2500
C) 0.4500
D) 0.8100
E) none of these
Correct Answer:
Verified
Correct Answer:
Verified
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