Multiple Choice
The index model has been estimated for stocks A and B with the following results:
RA = 0.01 + 0.8RM + eA
RB = 0.02 + 1.2RM + eB
ΣM = 0.20 σ(eA) = 0.20 σ(eB) = 0.10
The standard deviation for stock A is __________.
A) 0.0656
B) 0.0676
C) 0.2561
D) 0.2600
E) none of these
Correct Answer:
Verified
Correct Answer:
Verified
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