Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a stock went up from $ 4 3 . 6 0 to $ 5 2 . 9 0 last month, and the S&P 5

If a stock went up from $43.60 to $52.90 last month, and the S&P500(representing the market) went down from 3,540 to 3,030 last month, what would be the implied beta for the stock (if this is the only information you have)?
a.-0.68
b.0.68
c.-0.02
d.-1.48
e. None of the above is within 10 of the correct answer.
image text in transcribed

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

Fundamentals Of Futures And Options Markets

Authors: John C. Hull

4th Edition

0130176028, 9780130176028

More Books

Students also viewed these Finance questions

Question

What is the background of the situation?

Answered: 1 week ago