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taurus [48]
3 years ago
15

If a stock consistently goes down (up) by 1.6% when the market portfolio goes down (up) by 1.2%, then its beta equals:

Business
1 answer:
34kurt3 years ago
8 0

Answer: 1.33

Explanation:

Beta is a measure of how a stock moves in relation to the market and so can be calculated by the formula:

Beta = Change in stock / Change in market

= -1.6%/-1.2%

= 1.33

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