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.
Correct Answer:
Verified
Correct Answer:
Verified
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