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Beta of firm1 = Covariance with market/ Standard deviation of market2 = 0.0027/ (0.055)2 Beta of firm 1 =0.8926 Beta of firm 2 = Covariance
Beta of firm1 = Covariance with market/ Standard deviation of market2 = 0.0027/ (0.055)2 Beta of firm 1 =0.8926 Beta of firm 2 = Covariance of firm 2 with market / variance of market = 0.0032/ (0.055)2 = 0.0032/0.003025 Beta of firm 2 = 1.0579 Beta of firm 3 = Covariance of firm 3 with market / variance of market = 0.0042/ (0.055)2 = 0.0042/0.003025 Beta of firm 3 = 1.3884
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Microeconomics
Authors: Paul Krugman, Robin Wells
3rd edition
978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434
