Kaskin, Inc., stock has a beta of 1.2 and Quinn, Inc., stock has a beta of .6. Which of the following statements is most accurate? The expected rate of return will be higher for the stock of Kaskin, Inc., than that of Quinn, Inc. The stock of Kaskin, Inc., has more total risk than the stock of Quinn, Inc. The stock of Quinn, Inc., has more systemic risk than that of Kaskin, Inc.
Kaskin, Inc., stock has a beta of 1.2 and Quinn, Inc., stock has a beta of .6. Which of the following statements is most accurate? The expected rate of return will be higher for the stock of Kaskin, Inc., than that of Quinn, Inc. The stock of Kaskin, Inc., has more total risk than the stock of Quinn, Inc. The stock of Quinn, Inc., has more systemic risk than that of Kaskin, Inc.
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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Kaskin, Inc., stock has a beta of 1.2 and Quinn, Inc., stock has a beta of .6. Which of the following statements is most accurate?
- The expected
rate of return will be higher for the stock of Kaskin, Inc., than that of Quinn, Inc. - The stock of Kaskin, Inc., has more total risk than the stock of Quinn, Inc.
- The stock of Quinn, Inc., has more systemic risk than that of Kaskin, Inc.
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