A firm has a Beta of 1.6. The market return is measured as 8.5% and the risk free rate is 1.75% Is this firm's stock more or less volatile/risky than the overall stock market? Group of answer choices This firm is MORE risky than the average firm. This firm is LESS risky than the average firm. This firm has SIMILAR risk to the average firm. There is not enough information to tell.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A firm has a Beta of 1.6. The market return is measured as 8.5% and the risk free rate is 1.75% Is this firm's stock more or less volatile/risky
than the overall stock market? Group of answer choices This firm is MORE risky than the average firm. This firm is LESS risky than the
average firm. This firm has SIMILAR risk to the average firm. There is not enough information to tell.
Transcribed Image Text:A firm has a Beta of 1.6. The market return is measured as 8.5% and the risk free rate is 1.75% Is this firm's stock more or less volatile/risky than the overall stock market? Group of answer choices This firm is MORE risky than the average firm. This firm is LESS risky than the average firm. This firm has SIMILAR risk to the average firm. There is not enough information to tell.
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