Stock C has a beta of 1.2, while Stock D has a beta of 1.6. Assume that the stock market is efficient. The required rates of return of the two stocks should be the samE。（ ）
举一反三
- You own a portfolio which isevenly distributed among U.S. Treasury bills, Stock A with a beta of .84, stock B with a beta of 1.48, and stock C, whichis equally as risky as the market. The risk-free rate of return is 4 percent and the expected return on the
- The covariance of the market"s returns with the stock"s returns is 0.007 and the standard deviation of the market"s returns is 0.15. What is the stock"s beta A: 0.23 B: 0.31 C: 0.57
- If you were willing to bet that the overall stock market was heading up on a sustained basis, it would be logical to invest in: ( ) A: high<br/>beta stocks. B: low<br/>beta stocks. C: stocks<br/>with large amounts of unique risk. D: stocks<br/>that plot below the security market line.
- A stock with a beta of zero would be expected to have a rate of return equal to A: the risk-free rate. B: the market rate. C: the prime rate. D: the average AAA bond.
- Relative to the underlying stock, a call option always has A: a higher beta and a higher standard deviation of return. B: a lower beta and a higher standard deviation of return. C: a higher beta and a lower standard deviation of return. D: a lower beta and a lower standard deviation of return.