Question: Answer B only please Stock FM has a standard deviation of 26.0 percent and a correlation coefficient of 0.70 with market returns. The standard deviation
Stock FM has a standard deviation of 26.0 percent and a correlation coefficient of 0.70 with market returns. The standard deviation of market return is 21.0 percent, and the expected return is 17.0 percent. The risk-free rate is 7.5 percent. (a) Your answer is correct. What is the beta of stock FM? (Round answer to 3 decimal places, e.g. 0.364.) Beta eTextbook and Media Using multiple attempts will impact your score. Attempts: 1 of 3 used 25% score reduction after attempt 1 (b) What is the required rate of return of stock FM by the CAPM model? (Round answer to 3 decimal places, e.g. 11.361\%.)
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