The standard deviation of stock returns of Park Corporation is 60%. The standard deviation of the market
Question:
The standard deviation of stock returns of Park Corporation is 60%. The standard deviation of the market return is 20%. If the correlation between Park and the market is 0.40, what is Park’s beta?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (3 reviews)
To calculate Park Corporations beta we can use the formula for beta in the context of the ...View the full answer
Answered By
Joan Gakii
I'm a meticulous professional writer with over five years writing experience. My skill set includes
- Digital Content,
- Interpersonal Communication,
- Web Content and academic Writing,
- Proofreading,
- Editing,
- Project Management, and
- Public Relations.
5.00+
7+ Reviews
12+ Question Solved
Related Book For
Intermediate Financial Management
ISBN: 9781337395083
13th Edition
Authors: Eugene F. Brigham, Phillip R. Daves
Question Posted:
Students also viewed these Business questions
-
The tab contains monthly holding period stock returns for International Business Machines Corp. (IBM), Microsoft Corp. (MSFT), and Caterpillar Inc. (CAT) for the months from January 2016 through...
-
Beta The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market return is 20%. If the correlation between Stock A and the market is 0.70, what is Stock As beta?
-
1. The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market return is 24%. If the correlation between Stock A and the market is 0.90, then what is Stock A's...
-
EX: let X ~ B (5, 0.4) X ~ B (7, 004) Xz ~ B ( 7 0.2) Find the dist. of Now Noint cik Date. 2 No. R X) q X + X 3 X + X
-
What is the speed of a proton whose ke is 4.2 keV?
-
The balance sheets for Victoria plc as at 30 June 2009 and 30 June 2010 are shown below: The following information is also relevant: 1. During the years 2009 and 2010 Victoria plc disposed of no...
-
What Are the Challenges of Working in a Virtual World? (pp. 413416)
-
Enders, Inc., a domestic corporation that invests in foreign securities, reports total taxable income for the tax year of $290,000, consisting of $208,800 in U.S.-source business profits and $81,200...
-
real estate D E F G H Use the information below to calculate the Overall Yield Rate (IRR). Year 0 ($1,800,000) Year 1 $189,000 Year 2 $194,400 Year 3 $200,880 Year 4 $200,880 Operating NOI Residual...
-
Explain the meaning and significance of a stocks beta coefficient. Illustrate your explanation by drawing, on one graph, the characteristic lines for stocks with low, average, and high risk.
-
What is the difference between the CML and the SML?
-
Northgate Publishers, Inc., had sales of $900,000 during 20X1, 80% of them on credit and 20% for cash. During the year, accounts receivable increased from $60,000 to $90,000, an increase of $30,000....
-
Consider the expression timing is everything in relation to the building of the TOMS brand. Besides the influence of recovering economic conditions and the increased affluence of potential customers,...
-
What is corporate strategy and why is it important? Choose a company with which you are familiar, and evaluate its corporate strategy, especially in regards to financial strategies. What are some...
-
Assignment Tasks: Review the following situations and for each pay period determine the employee's net pay by calculating what earnings & benefits are subject to Income Tax, Canada / Quebec Pension...
-
sample letter for signature change on bank accounts for principals of school
-
Use Excelshowing all work and formulasto complete the following: Prepare a flexible budget. Compute the sales volume variance and the variable cost volume variances based on a comparison between...
-
Use a single command to create a row vector (assign it to a variable named a) with 6 elements such that the last element is 4.7 and the rest of the elements are 0s. Do not type the vector elements...
-
Smiths Family Fashions implemented a balanced scorecard performance measurement system several years ago. Smiths is a locally owned clothing retailer with fashions for men, women, teens, and...
-
Explain why a firm may want to pursue a market penetration opportunity before pu r suing one involving product development or diversification.
-
In your own words, explain several reasons why a marketing manager should co n sider international markets when evaluating possible opportunities.
-
Give an example of a foreign-made product (other than an automobile) that you pe r sonally have purchased. Give some reasons why you purchased that product. Do you think that there was a good...
-
Present Value Computations Using the present value tables, solve the following. ( Click here to access the PV and FV tables to use with this problem. ) Round your answers to two decimal places....
-
A company provided the following data: Sales $887,000 Variable costs $546,800 Fixed costs $310,000 Expected production and sales in units 36,000 What is the break-even point in sales dollars? Please...
-
How to solve them..equation and explain ..please.. 1. Selected information from the companys financial records is presented below Equipment, December 31, 2013 $300,000 Equipment, December 31, 2014...
Study smarter with the SolutionInn App