Suppose you estimate that the correlation between Abercrombie and Fitch (ANF) stock returns with market portfolio...

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Suppose you estimate that the correlation between Abercrombie and Fitch (ANF) stock returns with market portfolio returns is 0.85. You also estimate that ANF's stock returns are twice as a variable (ANF/M-2.0). Therefore, what is the beta for ANF stock (BANF)? Given the re-stated information below (and expected returns you should have already calculated), what is the correlation between Stock A and B returns? State Dep Rec Norm Boom Prob 0.1 0.3 0.4 0.2 Stock A Return A -0.25 0.12 0.33 0.42 Stock B Return B 0.04 0.18 -0.12 0.08 Suppose you estimate that the correlation between Abercrombie and Fitch (ANF) stock returns with market portfolio returns is 0.85. You also estimate that ANF's stock returns are twice as a variable (ANF/M-2.0). Therefore, what is the beta for ANF stock (BANF)? Given the re-stated information below (and expected returns you should have already calculated), what is the correlation between Stock A and B returns? State Dep Rec Norm Boom Prob 0.1 0.3 0.4 0.2 Stock A Return A -0.25 0.12 0.33 0.42 Stock B Return B 0.04 0.18 -0.12 0.08

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