FINANCE 261 Quiz 4

Suppose Stock X has a beta of 𝛽 𝑋 = 0.5 and Stock Y has a beta of 𝛽 𝑌 = 1.4  with respect to the single factor, M. The single factor, M, has a return standard deviation of 𝜎 𝑀 = 0.2 .   R...