You Are Recalculating the Risk of ACE Stock in Relation

question 41

Multiple Choice

You are recalculating the risk of ACE stock in relation to the market index and you find the ratio of the systematic variance to the total variance has risen.You must also find that the ____________.

• A) covariance between ACE and the market has fallen
• B) correlation coefficient between ACE and the market has fallen
• C) correlation coefficient between ACE and the market has risen
• D) unsystematic risk of ACE has risen

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