Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help with this question with work shown! Stock A has an expected return of 8%, beta of 0.8, and standard deviation of 30%. The
Please help with this question with work shown!
Stock A has an expected return of 8%, beta of 0.8, and standard deviation of 30%. The specific risk of stock A is 20%. The risk free rate is 2%. If return on the market is 12% and the standard deviation of the market is 25%, what is the information ratio of Stock A?
a. 0.1
b. 0.08
c. Not enough information
d. -0.1
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