Question
9. The index model has been estimated for stocks A and B with the following results: (10 marks) RA = 0.03 + 0.7RM + eA
9. The index model has been estimated for stocks A and B with the following results: (10 marks) RA = 0.03 + 0.7RM + eA RB = 0.01 + 0.9RM + eB M = 0.35; (eA) = 0.20; (eB) = 0.10 a. What is the standard deviation of stock A?
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
