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Calculate the beta of each of the stocks in Table 7.9 relative to a portfolio with equal investments in each stock. Stock BHP BP Fiat
Calculate the beta of each of the stocks in Table 7.9 relative to a portfolio with equal investments in each stock.
| Stock | BHP | BP | Fiat | Heineken | Nestle | Sony | TAM | Tata |
| BHP | 1.00 | 0.30 | 0.45 | 0.42 | 0.21 | 0.48 | 0.19 | 0.33 |
| BP | 0.30 | 1.00 | 0.28 | 0.25 | 0.15 | 0.29 | -0.12 | 0.17 |
| Fiat | 0.45 | 0.28 | 1.00 | 0.36 | 0.36 | 0.23 | -0.03 | 0.32 |
| Heineken | 0.42 | 0.25 | 0.36 | 1.00 | 0.28 | 0.46 | -0.02 | 0.36 |
| Nestle | 0.21 | 0.15 | 0.36 | 0.28 | 1.00 | 0.08 | -0.09 | 0.21 |
| Sony | 0.48 | 0.29 | 0.23 | 0.46 | 0.08 | 1.00 | -0.04 | 0.33 |
| TAM | 0.19 | -0.12 | -0.03 | -0.02 | -0.09 | -0.04 | 1.00 | 0.18 |
| Tata | 0.33 | 0.17 | 0.32 | 0.36 | 0.21 | 0.33 | 0.18 | 1.00 |
| Standard Deviation: | 22% | 33.80% | 44.60% | 20.30% | 14.00% | 34.50% | 42.40% | 44.50% |
| Standard deviation of returns and correlation coefficients for a sample of eight stocks. | ||||||||
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Financial Management Theory And Practice
Authors: Prasanna Chandra
7th Edition
0070656657, 978-0070656659
