Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 20, 2024

Beta The standard deviation of stock returns for Stock A is 41%. The standard deviation of the market return is 22%. If the correlation between

Beta The standard deviation of stock returns for Stock A is 41%. The standard deviation of the market return is 22%. If the correlation between Stock A and the market is 0.40, then what is Stock A's beta? Round your answer to two decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

The World Is Your Oyster The Guide To Finding Great Investments Around The Globe

Authors: Jeff D. Opdyke

1st Edition

0307381048, 978-0307381040

More Books

Students also viewed these Finance questions

Question

★★★★★

The general addition rule for two events is presented in Formula 4.3 on page 175 and that for three events is displayed on page 177. Formula 4.3 If A and B are any two events, then P(A or B) = P(A) +...

Answered: 1 week ago

Question

★★★★★

1. What do I want to achieve?

Answered: 1 week ago

Question

★★★★★

In Chapter 2, a number of predictions were made about the next ten years. Which apply to us and how? P987

Answered: 1 week ago

Question

★★★★★

A product manager has been reviewing selling expenses (that is, advertising, sales commissions, and so on) associated with marketing a line of household cleaning products. The manager suspects that...

Answered: 1 week ago

Question

★★★★★

sometimes there is a drop in benefits from short-term to long-term coverage. Why is this?

Answered: 1 week ago

Question

★★★★★

3.For the following paraphrase, choose the correct citation: ------- contend that the introduction of e-commerce does not affect the international price or the price point of products sold in more...

Answered: 1 week ago

Question

★★★★★

A decrease in the investment rate. Suppose the US congress enacts legislation that discourages saving and investment, such as the elimination of the investment tax credit that occurred in 1990. As a...

Answered: 1 week ago

Question

★★★★★

2. Titania Co. sold $600,000 of 12% bonds on June 1, 2015. The bonds pay interest on December 1 and June 1. The bonds mature on June 1, 2020. The bonds yield 10%, and were sold for $638,780. On...

Answered: 1 week ago

Question

★★★★★

3. A large bubble (5 m3) of pure methane gas is released from a broken riser pipe on an\ offshore oil rig. If the break in the riser pipe is 600 m beneath the ocean surface where the\ water...

Answered: 1 week ago

Question

★★★★★

Pick a sports team that you are familiar with (e.g., the university basketball team or a local professional team) and answer the following questions: Describe the team you chose to focus this...

Answered: 1 week ago

Question

★★★★★

As an equity analyst you are concerned with what will happen to the required return to Universal Toddler Industries' stock as market conditions change. Suppose rRF=5%, rM=12% and bUTI=1.4. a. Under...

Answered: 1 week ago

Question

★★★★★

Why might a manager intentionally distort appraisal results? What would you recommend to minimize this problem?

Answered: 1 week ago

Question

★★★★★

Employees in your company currently choose and enroll in benefits programs after reading communications brochures, completing enrollment forms, and sending them to their HR rep. A temporary staff has...

Answered: 1 week ago

Question

★★★★★

Why have the roles and activities of the HRM function changed over the past 20 to 30 years? What has been driving this change? How effectively do you think HRM has responded?

Answered: 1 week ago

Previous Question Next Question