Stock A has a beta of 1.2. Its sensitivity of returns is A. 20% more than...
Stock A has a beta of 1.2. Its sensitivity of returns is
A. 20% more than the market index.
B. is 120% more than the market index
. C. is 0.20% more than the market index
. D. something you cannot determine from this number.
Homework Answers
Beta of 1.2 means 1.2 times sensitivity to market index or 20% more than the market index
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