FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hamsters Ltd has a beta of 0.9, a total standard return standard deviation of 60% and a residual standard deviation of 50%. The CAPM holds.

Hamsters Ltd has a beta of 0.9, a total standard return standard deviation of 60% and a residual standard deviation of 50%. The CAPM holds. What is the standard deviation of the market return in percent, up to two decimal places? Group of answer choices11.11% 15.75% None of the other answers are correct. 66.67% 36.85%

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

Personal Finance Turning Money Into Wealth

Personal Finance Turning Money Into Wealth

Authors: Arthur J. Keown

6th Edition

0132719169, 978-0132719162

More Books

Students also viewed these Finance questions

Question

★★★★★
The adjusted trial balance below of Smith Advisory Services is incomplete. Enter the adjustment amounts directly in the adjustment columns of the text. Service Revenue is the only account affected by...

Answered: 1 week ago

Question

★★★★★
Retirement Investment Advisors Incorporated, has just offered you an annual interest rate of 4 . 3 percent until you retire in 4 5 years. You believe that interest rates will increase over the next...

Answered: 1 week ago

Question

★★★★★
If X is exponential with rate , show that Y = [X]+1 is geometric with parameter p = 1 e, where [x] is the largest integer less than or equal to x.

Answered: 1 week ago

Question

★★★★★
Larry has severe vision problems and, in the past, he has claimed the additional standard deduction available to blind taxpayers. This year Larrys doctor prescribed a new type of contact lens that...

Answered: 1 week ago

Question

★★★★★
Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $310,600. The equipment was expected to have a useful life of three years, or 7,500 operating...

Answered: 1 week ago

Question

★★★★★
- Human Resource Technology Solutions 1. Cost/Benefit Analysis and Hurdle Rate Add: Service Staff $1,000,000 Management and Administration $500,000 Technology - Employee Service Center $300,000...

Answered: 1 week ago

Question

★★★★★
Which crystal system(s) listed below has (have) the following interaxial angle relationship? Triclinic Cubic Rhombohedral Hexagonal Monoclinic Tetragonal Orthorhombic a == y = 90

Answered: 1 week ago

Question

★★★★★
A very specific aspect of IT Governance is Data Governance. 1. What's the term "Data Governance" and explain it. 2. Explain what a data governance committee does within a health care organization. 3....

Answered: 1 week ago

Question

★★★★★
The purpose of this assignment is to record the work you have done finding a topic, building research questions, and doing a rhetorical analysis for your paper. Place your three (3) research...

Answered: 1 week ago

Question

★★★★★
13. [Anti-gradients] Find the general anti-gradient, f, i.e. f was the original function, and you are given the gradient of the function. (a) Vf(x, y) = (6x+4y, 2+12xy) -2e-2, -6z + 1y) (b) Vf(x,y) =...

Answered: 1 week ago

Question

★★★★★
A load downward load P 250 N is applied at B. It is supported by two truss members with member BA at an angle of 8 = 50 from horizontal and member BC at an angle of 02 35 from vertical. Calculate the...

Answered: 1 week ago

Question

★★★★★
5.103 Charles Thorson has asked you to determine the mean and variance for a portfolio that consists of 100 shares of stock from each of the following firms: 3M Company, Alcoa, Inc., Intel...

Answered: 1 week ago

Question

★★★★★
5.102 Zafer Toprak is a developing a new mutual fund portfolio and in the process has asked you to develop the mean and variance for the stock price that consists of 10 shares of stocks from Alcoa...

Answered: 1 week ago

Question

★★★★★
5.81 A hamburger stand sells hamburgers for $1.45 each. Daily sales have a distribution with a mean of 530 and a standard deviation of 69. a. Find the mean daily total revenues from the sale of...

Answered: 1 week ago

Previous Question Next Question