The market portfolio returns have a standard deviation of 28%, whereas the stock XYZ returns have a

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The market portfolio returns have a standard deviation of 28%, whereas the stock XYZ returns have a standard deviation of 40%. The correlation coefficient between the stock return and the market return is 0.5. What is the beta of stock XYZ?

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Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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Posted Date: Feb 05, 2024 10:31 AM

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The market portfolio returns have a standard deviation of 28%, whereas the stock XYZ returns have a

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To calculate the beta of stock XYZ we can use the formula Beta CovarianceStock X... View the full answer

Contemporary Financial Management

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