Q. 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? (Solved)

1. 18.2%

2. 19.0%

3. 23.8%

4. 30.5%

  • a. 18.2%
Subscribe Now

Get All Updates & News