If the beta of a stock is 1.8 and the overall market declines 20%, the expected return is:

– by
Question:

If the beta of a stock is 1.8 and the overall market declines 20%, the expected return is:

A.

-36%

B.

-18%.

C.

-20%.

D.

-28%

Answer» a. -36%

Note: The above multiple-choice question is for all general and Competitive Exams in India.