A stock has a beta equal to 1.0. Is the standard deviation of the stock equal to
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
No The stock may have a high low degree of diversifiable risk which is p...View the full answer
Answered By
Robert Mwendwa Nzinga
I am a professional accountant with diverse skills in different fields. I am a great academic writer and article writer. I also possess skills in website development and app development. I have over the years amassed skills in project writing, business planning, human resource administration and tutoring in all business related courses.
4.90+
187+ Reviews
378+ Question Solved
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
Question Posted:
Students also viewed these Corporate Finance questions
-
A stock has a beta of 1.2 and an expected return of 14 percent. A risk-free asset currently earns 5 percent. a. What is the expected return on a portfolio that is equally invested in the two assets?...
-
A stock has a beta of 1.15 and an expected return of 14 percent. A risk-free asset currently earns 4.2 percent. a. What is the expected return on a portfolio that is equally invested in the two...
-
A stock has a beta of 1.35 and an expected return of 16%. A risk-free asset currently earns 4.8%. 1. What is the expected return on a portfolio that is equally invested in the two assets? 2. If a...
-
A rectangular plate lying on the xy plane has sides 2 in the x direction and in the y direction, thickness h in direction z, and is made of a material with Young's modulus E, Poisson's ratio v, and...
-
What are the most common types of buffers?
-
(Appendix 7A) Why is applying the lower-of-cost-or-market rule to inventories often dif ficult? Are inventory market values objectively determined? What three market values are considered in the...
-
Is a voting ensemble model constructed from the classification results of the training set or the test set?
-
Revenue and expense data for the current calendar year for Sorenson Electronics Company and for the electronics industry are as follows. The Sorenson Electronics Company data are expressed in...
-
Question 1 5 pts You will receive $ 3 3 , 0 0 0 every 6 months for 1 0 years. The market rate is 5 . 4 % . What is the present value of the cash flow stream? ( Answer to nearest dollar )
-
Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and to...
-
If an asset lies above the security market line, is it overpriced or underpriced? Explain why.
-
Explain why the efficient markets hypothesis implies that a well-run company is not necessarily a good investment.
-
For H + 2 , explain why H aa is the total energy of an undisturbed hydrogen atom separated from a bare proton by the distance R.
-
A storeroom is used to organize items stored in it on N shelves. Shelves are numbered from 0 to N-1. The K-th shelf is dedicated to items of only one type, denoted by a positive integer A[K]....
-
CASES CASE 10.1 Money in Motion Jake Nguyen runs a nervous hand through his once finely combed hair. He loosens his once perfectly knotted silk tie. And he rubs his sweaty hands across his once...
-
(3.8) Axiom, Definition of false false = true (3.9) Axiom, Distributivity of over : (pq) p=q
-
The board of directors of Unilever has been impressed by the presentation you did, and they further instructed you to conduct a more insightful investigation about the Sri Lankan market. They have...
-
The sample space listing the eight simple events that are possible when a couple has three children is {bbb, bbg, bgb, ogg, gbb, gbg, ggb, ggg}. After identifying the sample space for a couple having...
-
What factors in real inventory control are not included in the economic order quantity model? If the costs of holding stock are so difficult to find, how reliable are the results from this kind of...
-
Government is advised to tax goods whose demand curves are inelastic if the goal is to raise tax revenues. If the goal is to discourage consumption, then it ought to tax goods whose demand curves are...
-
Consider the flow in a U-bend in a pipe. Water is flowing at a rate of \(80 \mathrm{~cm}^{3} / \mathrm{s}\) in a pipe of diameter \(10 \mathrm{~cm}\). The inlet pressure is \(1.2 \mathrm{~atm}\). The...
-
Rumolt Motors has 30 million shares outstanding with a price of $15 per share. In addition, Rumolt has issued bonds with a total current market value of $150 million. Suppose Rumolts equity cost of...
-
Restex maintains a debt-equity ratio of 0.85, and has an equity cost of capital of 12% and a debt cost of capital of 7%. Restexs corporate tax rate is 40%, and its market capitalization is $220...
-
Acme Storage has a market capitalization of $100 million and debt outstanding of $40 million. Acme plans to maintain this same debt-equity ratio in the future. The firm pays an interest rate of 7.5%...
-
SWU's president, Dr. Joel Wisner, decided it was time for his vice president of development to forecast when the existing stadium would "max out." The expansion was, in his mind, a given. But Wisner...
-
Problem 1 (50 pts.) A simply supported reinforced concrete beam has a width (b) of 14 inches, and an effective depth (d) of 23 inches. The beam has a span of 26 ft. It is supposed to carry a...
-
Discuss about Medical Sciences branches.
Study smarter with the SolutionInn App