What would make for a larger increase in the stock's variance: an increase of .15 in its beta or an increase of 3% (from 30% to 33%) in its residual standard deviation?

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asked Oct 15, 2023 221k views

1 Answer

Djdy · Answer 1 · 2023-10-20T17:32:15+0000

.15 because if you were to gain 3%, converting that to a decimal would be making the 3% go to .03 which .15 is bigger than .03