Question
LVMH (Louis Vuitton Moet Hennessy), a luxury brand holding company, had a standard deviation of 10% per month over the last 3 years. The S&P
LVMH (Louis Vuitton Moet Hennessy), a luxury brand holding company, had a standard deviation of 10% per month over the last 3 years. The S&P 500, a proxy for the market, had a monthly standard deviation of 3.5%. LVMH had a correlation coefficient with the S&P 500 of 0.7. What is the Beta estimate for LVMH? Round to two decimal places.
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
Fundamentals Of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
3rd Edition
0321541642, 9780321541642
