Question: can you please explain how to do it it is corporate finance The market has a Sharpe ratio of 1.42 and a risk premium or

can you please explain how to do it it is corporate finance

The market has a Sharpe ratio of 1.42 and a risk premium or 17.4%. SUCK ADU T U 0.73 and a risk premium of 24%. Find the covariance of Stock ABC's return with the market return. Assume the CAPM assumptions hold. 0.01926 O 0.02216 0 0.02361 O 0.02071 O 0.02506 The market has a Sharpe ratio of 1.42 and a risk premium of 17.4%. Stock ABC has a Sharpe ratio of 0.73 and a risk premium of 24%. Find the covariance of Stock ABC's return with the market return. Assume the CAPM assumptions hold. O 0.01926 O 0.02216 0.02361 O 0.02071 O 0.02506

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!

can you please explain how to do it it is corporate finance Assume that the Sharpe ratio for the market is 1.07. Stock XYZ has a correlation of 0.45 with the market, and a volatility of 0.42....

can you please explain how to do it it is corporate finance A certain stock has a risk premium of 21.9%, a Sharpe ratio of 0.71, a correlation of 0.55 with the market, and a beta of 1.12. The risk...

Need help with these discussion postings (in a document) and assignments (all in separate files), all directions are included as well. FINANCE DIRECTIONS Need to provide 1 original post substantial...

You have recently graduated from college, and your job search led you to East Coat Yachts. Since you left the companys business was seaworthy, you accepted a job offer. The first day on the job,...

Please help me answer these questions Valuation for Corporate Finance Final Exam 2023 - Valuation of Youx Total grade: 100 points You are hired by Goldman Sharks (GS), a leading investment bank in...

Need help with finance investment homework. Deadline is in 15 hours. Thank you. 1 Investments - Finance 460AB Homework #4, Due Friday February 10, 2017 at 6 PM For all assignments: Please place your...

1. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method. 2. What do you estimate the company?s WACC? Please...

How would you calculate these questions? can you do a step by step to find the answer. Really struggling. I've also attached chapter 10 mini case study as well. idk if it helps or they are connected...

ITEM #1 LEARNING FROM THE HEADLINES True to the Learning from the Headlines approach of this course, watch the Part Three Intro Video after you read the short article the video highlights. Notice...

Hello This is regarding BUS5440. I need help with the following discussion questions and I need the answer in next 2 hrs as I have a deadline today, *********************************** Share your...

REQUIREMENTS Please follow these instructions carefully! 3. Prepare a 6-column worksheet and enter the? December ? 31 ?unadjusted balances from the general ledger ? ? accounts. Also enter adjusting...

For the following, use the spring equation: e dy k + m dt m 4, m + with c ues of k 1. k=5 (b) (c) -y

Charies is in his mid - 8 0 s , having worked hard throughout his life to build up his wealth. Now, for the first time, he's decided to write a Will. He never married or had children and has always...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".