An analyst evaluates three stocks with the following characteristics:
- Stock 1: Beta = 0.9, Standard Deviation of Returns = 17%
- Stock 2: Beta = 1.1, Standard Deviation of Returns = 18%
- Stock 3: Beta = 1.2, Standard Deviation of Returns = 16%
If the standard deviation of market returns is 10%, which stock has the highest nonsystematic risk? | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
Get started today
Ultimate access to all questions.
Comments
Loading comments...
An analyst evaluates three stocks with the following characteristics:
Stock 1: Beta = 0.9, Standard Deviation of Returns = 17%
Stock 2: Beta = 1.1, Standard Deviation of Returns = 18%
Stock 3: Beta = 1.2, Standard Deviation of Returns = 16%
If the standard deviation of market returns is 10%, which stock has the highest nonsystematic risk?