What proportion of each stock's risk was market risk, and what proportion was unique risk? b. What
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What proportion of each stock's risk was market risk, and what proportion was unique risk?
b. What is the variance of BP? What is the unique variance?
c. What is the confidence level on British Airways beta?
d. If the CAPM is correct, what is the expected return on British Airways? Assume a risk-free interest rate of 5 percent and an expected market return of 12 percent.
e. Suppose that next year the market provides a zero return. What return would you expect from BritishAirways?
Related Book For
International Financial Management
ISBN: 978-0132162760
2nd edition
Authors: Geert Bekaert, Robert J. Hodrick
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