Q775
In capital asset pricing model, stock with high standard deviation tend to have
A.
low variation
B.
low beta
AnswerC.
high beta
D.
high variation
Answer: Option B
Solution
Answer: Option B
Solution:
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.