Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The alpha of AAPL and TSLA is 0. The variance of the market shock is om 7.37%. The variance ore of the firms-specific shock of

image text in transcribed

The alpha of AAPL and TSLA is 0. The variance of the market shock is om 7.37%. The variance ore of the firms-specific shock of AAPL is 19.03% and TSLA is 6.61%. beta of AAPL is -0.73 and the beta of TSLA is 1.48. Based on the Single Index Model, what is the variance of the returns of AAPL?|

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image

Step: 3

blur-text-image

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

Free Dollar For College For Dummies

Authors: David Rosen, Caryn Mladen

1st Edition

0764554670, 978-0764554674

More Books

Students also viewed these Finance questions

Question

Show that (pq) (p q).

Answered: 1 week ago