The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market
Question:
The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market return is 20%. If the correlation between Stock A and the market is 0.70, then what is Stock A’s beta?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (5 reviews)
Beta is a measure of the volatility of a stock relative to ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial management theory and practice
ISBN: 978-1439078099
13th edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Question Posted:
Students also viewed these Business questions
-
Beta The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market return is 20%. If the correlation between Stock A and the market is 0.70, what is Stock As beta?
-
The tab contains monthly holding period stock returns for International Business Machines Corp. (IBM), Microsoft Corp. (MSFT), and Caterpillar Inc. (CAT) for the months from January 2016 through...
-
1. The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market return is 24%. If the correlation between Stock A and the market is 0.90, then what is Stock A's...
-
On July 1,the first day of their fiscal year, the City of Denver sold bonds with a face value of $10,000,000 at 102 percent par. The bonds bear annual interest at 6 percent; interest is payable...
-
Briefly discuss the various types of countertrade.
-
As the new vice president for consumer products at Heffner Manufacturing, you are attending a meeting to discuss a serious problem associated with delivering merchandise to customers. Bob Smith,...
-
A university pumps its water from wells located on campus. The falling water table has caused pumping costs to increase, the quantity of water available to decrease, and the quality of water to...
-
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Part...
-
Superior has provided the following information for its recent year of operation: The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000. How...
-
Start with the partial model in the file Ch23 P06 Build a Model.xls on the textbooks Web site. Use the information and data from Problem 23-5. a. Create a hedge with the futures contract for Zinn...
-
You are given the following set of data: a. Use a spreadsheet (or a calculator with a linear regression function) to determine Stock Xs beta coefficient. b. Determine the arithmetic average rates of...
-
Fujido made photocopiers and sold service agreements as part of its sales for the photocopiers. The parts that were used in the photocopiers were not interchangeable with other parts, thus, if you...
-
Contrary to popular belief, older people do not need less sleep than younger adults. However, the line graphs show that they awaken more often during the night. The numerous awakenings are one reason...
-
Worldwide Games develops and markets gaming software and devices. Game enthusiasts are always on the lookout for game-playing experiences that are more intense and lifelike, so Worldwide is...
-
As a child, Mikala Eagle loved riding her skateboard and doing tricks. By the time she was a teenager, she was so good that she began entering and winning professional contests. By her twenties,...
-
Refer to the Baseball 2019 data, which report information on the 30 Major League Baseball teams for the 2019 season. Consider the following variables: number of wins, payroll, season attendance,...
-
Which of the following are true right before the main() method ends? (Choose two.) A. No objects are eligible for garbage collection. B. One object is eligible for garbage collection. C. Two objects...
-
How are the fund used which are provided by FUTA and SUTA?
-
A certain Christmas tree ornament is a silver sphere having a diameter of 8.50 cm. Determine an object location for which the size of the reflected image is three-fourths the size of the object. Use...
-
Which of the three project risk measures--stand-alone, corporate, and market--is relevant to not-for-profit businesses? MINI CASE Sandra McCloud a finance major in her last term of college is...
-
What is a corporate beta? How does it differ from a market beta? MINI CASE Sandra McCloud a finance major in her last term of college is currently scheduling her placement interviews through the...
-
In general, how is project risk actually measured within not-for-profit businesses? How is project risk incorporated into the decision process? MINI CASE Sandra McCloud a finance major in her last...
-
Macmillan Learning The cumene process is used to convert benzene and propene in the presence of oxygen to phenol and acetone via the reaction CH+CH+0,CH,OH+CHO This reaction is carried out with...
-
The reaction H2 + I 2 = 2HI occurs in the gas phase within a closed piston assembly. The gases are ideal, and the reactor will operate isothermally. The reaction is first order in the concentration...
-
Given that there is a counter-transport of 3 moles of A and 5 moles of B in the film between a permeable membrane and the bulk. The film between the membrane and the bulk is 4 microns thick. The...
Study smarter with the SolutionInn App