An investor gathered the following information regarding three stocks, which are not in the market portfolio: Standard Deviation 25% 30% 23% Stock A B C The return on the market portfolio is 15% with a standard deviation of 21%, and the risk-free rate of return is 4%. Stock A's nonsystematic variance is closest to: 0.0036 Expected Return 22% 17% 19% O 0.0247 O 0.0091 Beta 1.1 1.4 0.8
An investor gathered the following information regarding three stocks, which are not in the market portfolio: Standard Deviation 25% 30% 23% Stock A B C The return on the market portfolio is 15% with a standard deviation of 21%, and the risk-free rate of return is 4%. Stock A's nonsystematic variance is closest to: 0.0036 Expected Return 22% 17% 19% O 0.0247 O 0.0091 Beta 1.1 1.4 0.8
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:An investor gathered the following information regarding three stocks, which are not in the market portfolio:
Standard Deviation
25%
30%
23%
Stock
A
B
с
The return on the market portfolio is 15% with a standard deviation of 21%, and the risk-free rate of return is 4%.
Stock A's nonsystematic variance is closest to:
O 0.0036
O 0.0247
Expected Return
22%
17%
19%
O 0.0091
Beta
1.1
1.4
0.8
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