Suppose you plot the historical returns of a stock versus


Suppose you plot the historical returns of a stock versus the returns of the overall market. If points are considerably scattered throughout the plot, rather than staying tight to the line of best fit, this reflects the:

changes in the market risk premium over time.

current underpricing of the stock.

high beta of the stock.

low beta of the stock.

asset-specific risk of the stock.

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Financial Management: Suppose you plot the historical returns of a stock versus
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