The following are estimates for 2 stocks Stock Expected ret beta firm specific variance, or Var(e) A 13 0 9 0 32 B 18 2 0 0 45 The market index has a standard deviation of 0 23, and the risk free rate if 0 05 What is the standard deviation of stock A 's return ...

To calculate the standard deviation of stock As return we can use the formula for the ...

The following are estimates for 2 stocks. Stock Expected ret. beta firm-specific variance, or Var(e) A 13%

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The following are estimates for 2 stocks.

Stock	Expected ret.	beta	firm-specific variance, or Var(e)
A	13%	0.9	0.32
B	18%	2.0	0.45

The market index has a standard deviation of 0.23, and the risk-free rate if 0.05

What is the standard deviation of stock A's return?

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Posted Date: Mar 07, 2024 11:35 PM

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The following are estimates for 2 stocks. Stock Expected ret. beta firm-specific variance, or Var(e) A 13%

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Investments

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