Question: Using the return data below calculate beta of the stock. = c o v ( B i , R M ) s M 2 =

Using the return data below calculate beta of the stock.
=cov(Bi,RM)sM2
=0.9390.6489=1.448
The security has more market risk than market portfolio and requires more than the market return.
Using the return data below calculate beta of the stock. =cov(Bi,RM)sM2

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:

I need help with trying to figure out the following: Risk and Return 1) For this question, please assume that markets are efficient. BRIEFLY answer the following. Suppose that a risk-averse investor...

Q:

Using monthly return data, you have estimated that Tesla's stock beta (beta) equals 2.091. What would Tesla's beta be if you estimate it using annual return data (round your answer to 2 decimal...

Q:

All of the following statements are TRUE about the VLOOKUP function EXCEPT: a . None of the listed choices b . You can use it to look up a value and then, using that value as a reference, return data...

Q:

Hello, I need help with the highlighted questions(I, J, and K). Also, can you please explain how you completed the regression part. The assignment is Week 5 assignment. The other documents are from...

Q:

1. (5) A broad diversified bundle of stocks is expected to return R Mbar = 9%, with a variance of s M 2 = 36% 2 . The risk-free rate of return R F = 1%. a. Gabrielle is somewhat cautious, so she...

Q:

Assignment requirements for the course Derivatives and Risk Management: Individual Investment Trading Report: The goal of this individual assessment is to gain a better understanding of the equity...

Q:

Answer Question: Part A. Question 1 Security A has expected return of 17.6% and beta of 1.4. If the risk-free rate is 6%, what is the reward-to-risk rate for Security A? Enter your answer as a...

Q:

1. You will be assigned twenty (20) stocks from the current S&P 500 index. You must use these 20 stocks (or, more precisely, the ticker symbols) to download data from yahoo.com. Go to yahoo.com, then...

Q:

8 15 -80 -10 10 201 Estimating the Weighted Average Cost of Capital (WACC) for a project You currently own a company operating in the healthcare sector and you are considering expanding into the...

Q:

Calculate the following Question 1. The following information was extracted from the books of Lima traders for the year ended 31st dec 2009. a) Closing capital as at 31st /12/2009 -: sh 4000,000. b)...

Q:

On January 1, 2017, Frontier Corporation had $1,000,000 of common stock out-standing that was issued at par. It also had retained earnings of $750,000. The company issued 40,000 shares of common...

Q:

Repeat Problem 44 if the profit on a five-speed bicycle increases from $70 to $110 and all other data remain the same. If the slack associated with any problem constraint is nonzero, find it.

Q:

17.44 Determining the natural tolerances for the weight of ground beef. Table 17.3 gives data on the weight of ground beef sections. Since the distribution of weights has been stable, use the data in...

Q:

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

Q:

Identify the necessary implementation strategies and practices to achieve success.

Q:

Discuss the more popular typologies of generic strategies and the various HRM practices associated with each. page 80

Q:

List the components of the strategic management process. page 72