Question
Iyas estimated the index model for stocks A and B and found the following : R A = 0.01 + 0.9 R M + e
Iyas estimated the index model for stocks A and B and found the following :
RA = 0.01 + 0.9 RM + eA R2 = 0.25
RB = 0.2 +1.1 RM+ eB R2 = 0.2
if M = 0.25, what is the standard deviation of return for stock B?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
133879879, 978-0133879872
