Question
A stock has a correlation with the market of .50. The standard deviation of the market is 20%, and the standard deviation of the stock
A stock has a correlation with the market of .50. The standard deviation of the market is 20%, and the standard deviation of the stock is 30%.
a. What is the covariance between the expected return on the market and the stock?
b. What is the stock's beta?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
