1.Using 61 monthly observations you have just estimated that the covariance between return on stock A and...
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1.Using 61 monthly observations you have just estimated that the covariance between return on stock A and the market index is 0.075 and that the standard deviation of the market index is 0.25. Also, the standard error of the regression is 0.258795.
(a)what is the beta of stock A?
(b)what is the systematic risk of stock A?
(c)what is the firm-specific risk of stock A?
(d)calculate and interpret the coefficient of determination (R2).
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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