Question: A stock return's beta measures: Select one: a. the stock's covariance with the risk-free asset b. the standard deviation on the stock's return. c. the

A stock return's beta measures:

Select one:

a.

the stock's covariance with the risk-free asset

b.

the standard deviation on the stock's return.

c. the change in the stock's return for a given change in the market return.

d. the return on the stock.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Please assist with the assignment attached. Thank you 4) Portfolio Expected Return. You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and...

Q:

11, 5 Consider the following information: State of Probability of Rate of Return If State Occurs Economy State of Economy Stock A Stock B Stock C Boom .19 .366 .466 .346 Good .41 .136 .116 .186 Poor...

Q:

A) Compute the efficient frontier for (1) the three markets (i.e. US, Europe, Japan) and (2) all the six markets considered. Assume that investors can borrow and lend at the risk-free rate of...

Q:

A) Compute the efficient frontier for (1) the three markets (i.e. US, Europe, Japan) and (2) all the six markets considered. Assume that investors can borrow and lend at the risk-free rate of...

Q:

can u answer the question that i have attached? 4. Portfolio Expected Return. You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock...

Q:

4. Portfolio Expected Return. You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 11 percent. If...

Q:

4.Portfolio Expected Return. You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 11 percent. If your...

Q:

Portfolio Expected Return. You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 11 percent. If your...

Q:

Using CAPM A stock has a beta of 1.15 and an expected return of 11.4 percent. A risk-free asset currently earns 3.5 percent. a. What is the expected return on a portfolio that is equally invested in...

Q:

A stock has a beta of 1.28 and an expected return of 12.6 percent. A risk-free asset currently earns 4.2 percent. a. What is the expected return on a portfolio that is equally invested in the two...

Q:

A finance executive would like to determine if a relationship exists between the current earnings per share (EPS) of a bank and the following independent variables: Total assets ($ billions) ...

Q:

The cantilever beam which is a rectangular load of 150 kg/m by 3.6 m long shown in the Figure is built into a wall concentrated load of 9 KN is applied at the free end. 0.6 m thick so that it rests...

Q:

The Longhaul Transport Company wishes to predict the price of petrol based on international crude oil prices. They record average monthly petrol prices and crude oil prices over a 12-month period.

Q:

What Constitutional Rights do inmates have?

Q:

Relate the major historical events leading up to the establishment of HRD as a profession

Q:

Distinguish between HRD and human resource management (HRM)

Q:

Define what the four-fifths rule is.