Security A B C Beta 0.8 1.0 1.2 Expected Return 10% 12% 14% Residual standard deviation 25% 10% 20% If the standard deviation on the market is 20% calculate the variance of returns For C. A) 881 B) 400 C) 976 D) 576

Security A B C Beta 0.8 1.0 1.2 Expected Return 10% 12% 14% Residual standard deviation 25% 10% 20% If the standard deviation on the market is 20% calculate the variance of returns For C. A) 881 B) 400 C) 976 D) 576

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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Question

Security
A
B
C
Beta
0.8
1.0
1.2
Expected Return
10%
12%
14%
Residual standard
deviation
25%
10%
20%
If the standard deviation on the market is 20% calculate the variance of returns For C.
A) 881
B) 400
C) 976
D) 576

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