One asset has a beta of 1.5 and another asset has a beta of 0.75. The difference in beta mean that the asset with a beta of 0.75 has:
A) 75 percent less nondiversifiable risk than the asset with a beta of 1.5
B) 75 percent more nondiversifiable risk than the asset with a beta of 1.5
C) Twice as much nondiversifiable risk as the asset with a beta of 1.5
D) One-half of the nondiversifiable risk of the asset with a beta of 1.5
Correct Answer:
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