Examveda
Examveda

In capital asset pricing model, stock with high standard deviation tend to have

A. low variation

B. low beta

C. high beta

D. high variation

Answer: Option B

Solution(By Examveda Team)

In capital asset pricing model, stock with high standard deviation tend to have low beta. the market. If a stock moves less than the market, the stock's beta is less than 1.0.

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