Question
Suppose that the overall stock market (as measured by some broad benchmark index like the S&P) has a standard deviation of 20%. A particular stock
Suppose that the overall stock market (as measured by some broad benchmark index like the S&P) has a standard deviation of 20%. A particular stock has a standard deviation of 30%. The stock has a 0.4 degree of correlation with the benchmark index. What is the beta coefficient of this stock relative to the benchmark index (rounded to 2 decimals)?
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Business Statistics For Contemporary Decision Making
Authors: Black Ken
8th Edition
978-1118494769, 1118800842, 1118494768, 9781118800843, 978-1118749647
