Samsung Covariance - 0.03683

Samsung beta - 0.761

1. What is samsungs expected return?

2. If you think the expected return is 11%, then what is Samsungs alpha?

3. What is the fraction of non systematic risk in the total risk on samsung stock?

Samsung has a correlation with the S&P 500 of 0.62. Samsung's standard deviation is 0.27 and the S&P 500 has a standard deviation of 0.22. The risk-free rate is 0.013, and the expected return on the S&P 500 is 0.05 Samsung has a correlation with the S&P 500 of 0.62. Samsung's standard deviation is 0.27 and the S&P 500 has a standard deviation of 0.22. The risk-free rate is 0.013, and the expected return on the S&P 500 is 0.05