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Question
The index model has been estimated for stocks A and B with the following results:
RA = 0.01 + 0.8RM + eA.
RB = 0.02 + 1.2RM + eB.
σM = 0.20; σ(eA) = 0.20; σ(eB) = 0.10.
The standard deviation for stock A is
A. 0.0656.
B. 0.0676.
C. 0.2561.
D. 0.2600.
Answer
This answer is hidden. It contains 37 characters.
Related questions
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