Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider a stock that has a standard deviation of 23% and the correlation with the market is 0.52. The standard deviation of the market is

Consider a stock that has a standard deviation of 23% and the correlation with the market is 0.52. The standard deviation of the market is 6.4%. What is the beta of the stock? Enter your answer rounded to 2 DECIMAL PLACES.

Enter your response below.

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

More Books

Students also viewed these Finance questions

Question

1. 12.1a What are the two parts of total return?

Answered: 1 week ago