Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Expected Return Correlation with the S&P 500 Standard Deviation of Returns High Technology 10.50% 0.94 20.50% Tiger Semiconductor 13.85% 0.78 35.70% IND Microdevices 16.10% 0.81
Expected Return | Correlation with the S&P 500 | Standard Deviation of Returns | |
High Technology | 10.50% | 0.94 | 20.50% |
Tiger Semiconductor | 13.85% | 0.78 | 35.70% |
IND Microdevices | 16.10% | 0.81 | 38.70% |
S&P 500 | 11.20% | 1.00 | 19.90% |
The top right column is St Dev of returns
the expected equity risk premium to be 7% and uses the T-bills, currently 4.50%, as a proxy for the risk-free rate
Based on the chart in above , which of the three stocks has the most market risk as measured by its CAPM beta?
and using CAPM to determine required return, the expected alpha for Bearcat Semiconductor is ______
bearcat semiconductor is supposted to be tiger semi conductor
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