Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that returns are effective annual rates or net discrete returns Stock and Market Portfolio Effective Annual Returns Year Return on Stock A Return on

Assume that returns are effective annual rates or net discrete returns

Stock and Market Portfolio Effective Annual Returns

Year

Return on Stock A

Return on Market Portfolio

2017

0.22

0.30

2018

-0.16

-0.07

2019

0.15

0.28

all answer to 6dp

a) What is stock As past arithmetic average net discrete return?

b) What is the markets past arithmetic average net discrete return?

c) What is the sample arithmetic standard deviation of stock As net discrete returns?

d) What is the sample arithmetic standard deviation of the market portfolios returns?

e) What is the covariance of stock As returns with the market portfolio?

f) What is the correlation of returns between stock A and the market?

g) What is the beta of stock A?

h) What is the diversifiable variance of stock A?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Students also viewed these Finance questions

Question

=+ (d) Show that \, (He 0) =0 and A*(H) =1.

Answered: 1 week ago

Question

4. Describe the role of narratives in constructing history.

Answered: 1 week ago

Question

1. Identify six different types of history.

Answered: 1 week ago