12. Given information in Table 2, what's the standard deviation of the residuals (error) for Stock...
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12. Given information in Table 2, what's the standard deviation of the residuals (error) for Stock A in a Single-Index Model? a. 2.24% b. 3.36% c. 4.48% d. 5.62% 13. Given information in Table 2, what's the beta of a portfolio with 30% Stock A, 30% Stock B, and the remainder in cash? a. 0.62 b. 0.37 ⠀⠀ c. 0.51 d. 0 Period 1 12345 3 Asset A 10% 3% 5% 2% 1% Table 2. Asset B 6% 6% 2% 4% 2% Market Portfolio 4% 1% 5% 2% 1% 12. Given information in Table 2, what's the standard deviation of the residuals (error) for Stock A in a Single-Index Model? a. 2.24% b. 3.36% c. 4.48% d. 5.62% 13. Given information in Table 2, what's the beta of a portfolio with 30% Stock A, 30% Stock B, and the remainder in cash? a. 0.62 b. 0.37 ⠀⠀ c. 0.51 d. 0 Period 1 12345 3 Asset A 10% 3% 5% 2% 1% Table 2. Asset B 6% 6% 2% 4% 2% Market Portfolio 4% 1% 5% 2% 1%
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Answer To calculate the standard deviation of the residuals for Stock A in a SingleIndex Model we need to calculate the residuals first Residuals are the differences between the actual returns of Stoc... View the full answer
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date:
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