What is measured by a stocks beta Suppose that stock A has ahigher be...

What is measured by a stockâ€™s â€œbetaâ€? Suppose that stock A has a higher beta than...

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Economics

What is measured by a stockâ€™s â€œbetaâ€? Suppose that stock A has ahigher beta than stock B, but its rate of return has a lowerstandard deviation than that of stock B. According to the CAPM,which stock should be expected to offer a higher average rate ofreturn? Explain.

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Beta is a measure used in fundamental analysis to determine the volatility of an asset or portfolio in relation to the overall market The overall market has a beta of 10 and individual stocks are ranked according to how much they deviate from the market What Is Beta A stock that swings more than the market over time has a beta See Answer

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What is measured by a stockâ€™s â€œbetaâ€? Suppose that stock A has a higher beta than...