Question
Question: Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates. Year Return on Stock A Return
Question: Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates.
| Year | Return on Stock A | Return on Market |
| 2007 | 35% | 15% |
| 2008 | -35% | -25% |
| 2009 | 15% | 40% |
1. What is the covariance of stock As returns with the market portfolio?
2. What is the correlation of returns between stock A and the market?
3.What is the beta of stock A?
4.What is the diversifiable variance of stock A?
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Production And Operations Analysis
Authors: Steven Nahmias, Tava Lennon Olsen
7th Edition
1478623063, 9781478623069
