The rates of return of stock A and the market portfolio for the 12 months are...
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The rates of return of stock A and the market portfolio for the 12 months are given below: Month 1 Stock A 10 (%) Market Portfolio (%) 111) iv) 3 2 3 4 5 6 15 18. 14 16 16 12 14 13 10 7 18 8 9 10 11 12 4 4 14 15 14 1 9 13. 14 7 12 Compute the average return of stock A and the market. Determine the variance of the return of stock A and the market. 4 16 Find the covariance between the return of stock and the market portfolio. (3mks) Estimate the beta factor for stock A The rates of return of stock A and the market portfolio for the 12 months are given below: Month 1 Stock A 10 (%) Market Portfolio (%) 111) iv) 3 2 3 4 5 6 15 18. 14 16 16 12 14 13 10 7 18 8 9 10 11 12 4 4 14 15 14 1 9 13. 14 7 12 Compute the average return of stock A and the market. Determine the variance of the return of stock A and the market. 4 16 Find the covariance between the return of stock and the market portfolio. (3mks) Estimate the beta factor for stock A
Expert Answer:
Answer rating: 100% (QA)
1 Average return The average return is the sum of the returns for each month divided by the number of months 12 in this case Average return of stock A sum of returns of stock A for 12 months 12 Averag... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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