MCQOPTIONS
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| 1. |
Suppose you estimate the characteristic line for Stock X. You find that the standard deviation of X’s error term is 7%, X’s beta is 1.4, and the standard deviation of the market is 12%. What is the total standard deviation for Stock X? |
| A. | 18.2% |
| B. | 19.0% |
| C. | 23.8% |
| D. | 30.5% |
| Answer» B. 19.0% | |