Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Mar 06, 2024

Stock A has a standard deviation of 2.3 and the market portfolio standard deviation is 3.2. The covariance of returns of the market and

Stock A has a standard deviation of 2.3 and the market portfolio standard deviation is 3.2. The covariance of returns of the market and Stock A is 4.26. What is the correlation coefficient between stock A and the market?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided bel... blur-text-image

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

Recommended Textbook for

Financial Decisions And Markets A Course In Asset Pricing

Authors: John Y. Campbell

1st Edition

0691160805, 978-0691160801

More Books

Students also viewed these Finance questions

Question

QUESTION 2 What are some disadvantages of incentive schemes? The Occupational Safety and Health Act mandated that all employers with 11 or more employees maintain records on work-related cases of...

Answered: 1 week ago

Question

★★★★★

Gary, the production manager, was pleased at the company's income statement results. Actual DL cost was only $59,095, compared to the budgeted $69,000, while actual sales volume came in 200 units...

Answered: 1 week ago

Question

★★★★★

PHY 242 - Laboratory Force on q by q =7.69 x 10 N Force on q by q2 7.69 x 106 N LABORATORY 3: ELECTRIC CHARGES AND FIELDS Objectives: visualize the electrostatic force that two charges exert on each...

Answered: 1 week ago

Question

★★★★★

Given the functions f(x) = 2x and g(x) = x 1) Find the points of intersection of the curves and plot the graphs of the functions. 2) Determine the area bounded by the curves in the interval [-1,3] 3)...

Answered: 1 week ago

Question

★★★★★

Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. Currently the manufacturer has seven machines that operate on a two-shift...

Answered: 1 week ago

Question

★★★★★

In an experiment to measure cosmic radiation, the number of cosmic rays was recorded for 200 different 5-s intervals. The grouped data are shown below: Make a relative frequency table. No. of Cosmic...

Answered: 1 week ago

Question

★★★★★

2. Remind students of upcoming assignments.

Answered: 1 week ago

Question

★★★★★

Lancaster Meat Company produces one of the best sausage products in southeastern Pennsylvania. The companys controller used the account-classification method to compile the following information. a....

Answered: 1 week ago

Question

★★★★★

The next dividend payment (D 1 ) by Cold Beer, Inc., will be $ 4.1 per share. The dividends are anticipated to maintain a 6 percent growth rate forever. If the stock currently sells for $ 48 per...

Answered: 1 week ago

Question

★★★★★

Chumpy Lighting Limited manufactures a wide variety of light bulbs which it sells to lighting shops and builders merchants through wholesale distributors. It also sells direct to the big UK...

Answered: 1 week ago

Question

★★★★★

Use the NOTUS criteria to mark the following statements as science, pseudoscience, protoscience or not science. Polar ice caps are melting. Artificial Intelligence could one day make decisions as...

Answered: 1 week ago

Question

★★★★★

The company named Canadian Shield will enter the market of China, Japan, and Germany; Please make an international business environmental Socio-Cultural analysis for China, Japan, and Germany in the...

Answered: 1 week ago

Question

★★★★★

Andretti Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling price of $56 per unit. The company's unit costs at this level of...

Answered: 1 week ago

Question

★★★★★

Now that you've explained it, your Events Manager at Hilton believes LEED is a good idea, but that becoming a Zero Carbon certified building is a better path to take. There are a number of strategies...

Answered: 1 week ago

Question

★★★★★

HW 5 (due on Wednesday, December Tuesday, December 8, at 11:59 pm). For all questions, please feel free to use Excel. Please write down the relevant formulas and explanations. You do not need to show...

Answered: 1 week ago

Question

★★★★★

Five years ago, a typical non-food prime site retailer starting out and looking to reach its optimum market might have targeted as many as 200 sites to trade from. Three years ago, that figure would...

Answered: 1 week ago

Question

★★★★★

The chart of accounts used by Bramble Copy Company is listed below. You are to indicate the proper accounts to be debited and credited for the following transactions by selecting the account name(s)...

Answered: 1 week ago

Question

★★★★★

(a) Given a mean free path = 0.4 nm and a mean speed vav = 1.17 105 m/s for the current flow in copper at a temperature of 300 K, calculate the classical value for the resistivity of copper. (b)...

Answered: 1 week ago

Question

★★★★★

A large literature, briefly discussed in section 11.4.1, examines the conditions under which agents with incorrect beliefs about fundamentals will be driven out of the market by rational agents in...

Answered: 1 week ago

Question

★★★★★

State whether each of the following statements is true or false. Provide a proof if the statement is true or a counterexample if the statement is false. (a) If $\widetilde{X}$ is a fair game with...

Answered: 1 week ago

Question

★★★★★

In this exercise we will explore the welfare implications of the distributive pecuniary externalities discussed in section 11.1.3 in an international setting where countries are subject to "sudden...

Answered: 1 week ago

Question

★★★★★

Referring to Exercise 18-15, suppose the process remained in control for the next 40 hours. The thickness measurements for hours 41 through 43 are as follows: Hour 41 0.764 0.737 0.724 0.716 0.752...

Answered: 1 week ago

Question

★★★★★

Data were collected on a quantitative measure with a subgroup size of five observations. Thirty subgroups were collected, with the following results: x 44.52 R5.6 a. Determine the Shewhart factors...

Answered: 1 week ago

Question

★★★★★

Philip Crosby wrote the book Quality Is Free. In it he argues that it is possible to have high quality and low price. Do you agree? Provide examples that support your position. Business Applications

Answered: 1 week ago

Previous Question Next Question