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4a-4g 4. Given the following returns: Year Stock X Market index -0.36 -0.29 2 -0.25 0.41 3 -0.14 0.09 4a. Calculate the beta of stock
4a-4g 4. Given the following returns: Year Stock X Market index -0.36 -0.29 2 -0.25 0.41 3 -0.14 0.09 4a. Calculate the beta of stock X. 18 points) 4b. Calculate the alpha of stock X. [4 points] 4c. Calculate the error terms of stock X. [9 points) 4d. Calculate the systematic risk of stock X. [3 points) 4e. Calculate the unsystematic risk of stock X. 14 points) 4f. Is stock X a good stock to consider for inclusion in a portfolio? Explain. [8 points) 4g. Write out the var-cov matrix of stock X and market index. [4 points)
4a-4g
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