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In capital asset pricing model covariance between stock and market is...

This question belongs to Commerce Financial Management
Financial Management
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In capital asset pricing model, covariance between stock and market is divided by variance of market returns is used to calculate

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Correct Answer: Option C
In capital asset pricing model, covariance between stock and market is divided by variance of market returns is used to calculate beta coefficient of company. beta of a company measures how the company's equity market value changes with changes in the overall market. It is used in the Capital Asset Pricing Model (CAPM) to estimate the return of an asset.
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