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Suppose that the average standard deviation of a highly diversified stock portfolio is 15% while the average standard deviation of an individual firm's stock returns are 35%. Therefore, the aggregate (or market) risk is. , while the idiosyncratic (or firm- specific) riels is

Suppose that the average standard deviation of a highly diversified stock portfolio is 15% while the average standard deviation of an individual firm's stock returns are 35%. Therefore, the aggregate (or market) risk is. , while the idiosyncratic (or firm- specific) riels is

Essentials Of Investments
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
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Suppose that the average standard deviation of a highly diversified stock portfolio is 15% while the average standard deviation of an individual firm's stock returns are 35%. Therefore, the aggregate (or market) risk is. , while the idiosyncratic (or firm- specific) risk is O 15% and 35% O 15% and 20% 20% and 15% 35% and 50%
Transcribed Image Text:Suppose that the average standard deviation of a highly diversified stock portfolio is 15% while the average standard deviation of an individual firm's stock returns are 35%. Therefore, the aggregate (or market) risk is. , while the idiosyncratic (or firm- specific) risk is O 15% and 35% O 15% and 20% 20% and 15% 35% and 50%
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