Suppose that an asset has a CAPM beta of 1.5. Which one of the following statemenits is correct? OA The asset price will move in the same direction as the market portfolio on average but by half as much. OB. The asset price will move in the opposite direction as the market portfolio on average but by half as much. OC. The asset has an unsystematic risk of 1.5. OD. This asset would be classed as aggressive.

Suppose that an asset has a CAPM beta of 1.5. Which one of the following statemenits is correct? OA The asset price will move in the same direction as the market portfolio on average but by half as much. OB. The asset price will move in the opposite direction as the market portfolio on average but by half as much. OC. The asset has an unsystematic risk of 1.5. OD. This asset would be classed as aggressive.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 20P

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