It is possible for a firm to have a positive beta, even if the correlation between its returns and those of another firm is negative.
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Q21: Portfolio A has but one stock, while
Q22: If the returns of two firms are
Q23: We would generally find that the beta
Q24: Under the CAPM, the required rate of
Q25: A portfolio's risk is measured by the
Q27: A stock's beta is more relevant as
Q28: The CAPM is built on historic conditions,
Q29: A firm can change its beta through
Q30: A stock with a beta equal to
Q31: The slope of the SML is determined
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