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Consider the following information on Stocks I and II: State of Economy Recession Normal Irrational exuberance Stock I Stock II Stock I Stock II Probability
Consider the following information on Stocks I and II: State of Economy Recession Normal Irrational exuberance Stock I Stock II Stock I Stock II Probability of State of Economy Beta The market risk premium is 8 percent and the risk-free rate is 5 percent. a-1. What is the beta of each stock? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a-2. Which stock has the most systematic risk? Stock I Stock II .30 .40 30 Rate of Return if State Occurs Standard Deviation % % Stock I .05 19 13 Stock II -18 .14 29 b-1. What is the standard deviation of each stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 
Consider the following information on Stocks I and il: The market risk premium is 8 percent and the risk-free rate is 5 percent. a-1. What is the beta of each stock? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a-2. Which stock has the most systematic risk? b-1. What is the standard deviation of each stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Step by Step Solution
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The Economics And Finance Of Professional Team Sports
Authors: Daniel Plumley, Rob Wilson
1st Edition
0367655667, 978-0367655662
