Apple's return has volatility 0.5. The market volatility is 0.2. A fraction 0.25 of the total variance of Apple is non-diversifiable. What is Apple's beta? Question 4 options: beta = 0.5 beta = 0.75 beta = 1 beta = 1.25 beta = 1.5

Apple's return has volatility 0.5. The market volatility is 0.2. A fraction 0.25 of the total variance of Apple is non-diversifiable. What is Apple's beta? Question 4 options: beta = 0.5 beta = 0.75 beta = 1 beta = 1.25 beta = 1.5

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 3Q: Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation...

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Question

Apple's return has volatility 0.5. The market volatility is 0.2.

A fraction 0.25 of the total variance of Apple is non-diversifiable.

What is Apple's beta?

Question 4 options:

	beta = 0.5
	beta = 0.75
	beta = 1
	beta = 1.25
	beta = 1.5

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