Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you know how to do it please it is corporate finance u can do beta will cov over the protfolio of variance A portfolio

can you know how to do it please it is corporate finance image text in transcribed
u can do beta will cov over the protfolio of variance
A portfolio consists of two stocks, Stock A and Stock B. The volatility of Stock A is 0.5 and the volatility of Stock B is 0.25. The proportion of the portfolio's value that is represented by shares of Stock A is 0.3. The correlation of the returns of the two stocks is 0.6. Calculate the beta of Stock A with the portfolio. O 1.5970 Answered O 1.7778 O 1.6874 O 1.4162 Correct Answer O 1.5066 0/1 pts

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_2

Step: 3

blur-text-image_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

Finance Led Capitalism Shadow Banking Re Regulation And The Future Of Global Markets

Authors: Robert Guttmann

1st Edition

1137398566, 978-1137398567

More Books

Students also viewed these Finance questions

Question

Explain the forces that influence how people handle conflict

Answered: 1 week ago