Suppose stock X has a beta of 2.5 and stock Y has a beta of 0.5.From this we can conclude that X has
A) 5 times the nondiversifiable risk of the market portfolio.
B) 5 times the nondiversifiable risk of Y.
C) 2.5 times the nondiversifiable risk of Y.
D) 2.5 times the diversifiable risk of the market portfolio.
Correct Answer:
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