Consider an economy with the following characteristics Average investor risk aversion is 4 1 Variance of the market portfolio is 84 Risk free rate is 1 9 If the expected return on a stock is 3 5, what is the beta of the stock if alpha 0 ...

Absolutely given the information about the economy we can calculate the beta of the stock assuming a ...

Consider an economy with the following characteristics: Average investor risk aversion is 4.1 Variance of the market

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Question:

Consider an economy with the following characteristics:

Average investor risk aversion is 4.1
Variance of the market portfolio is 84%
Risk-free rate is 1.9

If the expected return on a stock is -3.5, what is the beta of the stock if alpha = 0?

Posted Date: May 15, 2024 11:18 AM

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Consider an economy with the following characteristics: Average investor risk aversion is 4.1 Variance of the market

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