ESSENTIALS OF INVESTMENTS>LL<+CONNECT
ESSENTIALS OF INVESTMENTS>LL<+CONNECT
11th Edition
ISBN: 9781264001026
Author: Bodie
Publisher: MCG
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Chapter 6, Problem 23PS
Summary Introduction

Adequate information

    Month Market Return Generic Return
    1 0% +2%
    2 0% 0%
    3 -1% 0%
    4 -1% -2%
    5 +1% +4%
    6 +1% +2%

To determine:

The beta of the Generic Risk incorporation

Introduction:

Beta refers to the measure pertaining to the volatility of stock with respect to the market. The individual stocks are ranked in accordance with how much deviation it has when compared with the market. The beta of a stock that swings more in comparison to market possess beta greater than 1.

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