Multiple Choice
The index model has been estimated for stock A with the following results:
RA = 0.01 + 0.8RM + eA
ΣM = 0.20 σ(eA) = 0.10
The standard deviation of the return for stock A is __________.
A) 0.0356
B) 0.1886
C) 0.1600
D) 0.6400
E) none of these
Correct Answer:
Verified
Correct Answer:
Verified
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