Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 10, 2024

The correlation between a stock and the market is 0 . 5 3 6 . The covariance between this stock and the market is 0

The correlation between a stock and the market is

0.536 .

The covariance between this stock and the market is

0.075469 .

The standard deviation of the stock\'s returns are

44 % .

The average historical return of a broad

-

based market index, the CRSP Total Market Index is

10 % .

The market\'s standard deviation is

32 %,

and its variance is

0.1024 .

-

bills yield

3 % .

What is the stock\'s expected return?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Answer To calculate the stocks expected return using the Cap... 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

Document Format ( 2 attachments)

66425fe465835_981607.pdf

180 KBs PDF File

66425fe465835_981607.docx

120 KBs Word File

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

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

Concise 6th Edition

324664559, 978-0324664553

More Books

Students also viewed these Finance questions

Question

Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...

Answered: 1 week ago

Question

CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...

Answered: 1 week ago

Question

★★★★★

A government agency pays research contractors a fee to cover overhead costs, over and above the direct costs of a research project. Although overhead costs vary considerably among contracts, they are...

Answered: 1 week ago

Question

★★★★★

Which statements best describe the result of executing this code? (Choose two.) A. The println() causes one line of output. B. The println() causes two lines of output. C. The println() causes three...

Answered: 1 week ago

Question

★★★★★

A security expert claims that at least 14% of all homeowners have a home security alarm. State H0 and Ha in words and in symbols. Then determine whether the hypothesis test is left-tailed,...

Answered: 1 week ago

Question

★★★★★

In early 2004, Donald Trump took the idea of using a tournament for hiring executives to a whole new level with the premiere of the TV show The Apprentice. On the show, a group of contestants compete...

Answered: 1 week ago

Question

★★★★★

1.7 Voter Attitudes You are a candidate for your provincial assembly, and you want to survey voter attitudes regarding your chances of winning. Identify the population that is of interest to you and...

Answered: 1 week ago

Question

★★★★★

A young engineer is asked to design a thermal protection barrier for a sensitive electronic device that might be exposed to irradiation from a high-powered infrared laser. Having learned as a student...

Answered: 1 week ago

Question

★★★★★

The goal of science is to convince you that there is only one way to view the world. True False

Answered: 1 week ago

Question

★★★★★

In a recent advertising campaign, Applebee's Restaurant offered diners a special 3-course menu for $15.99. The menu included choices of three appetizers (Mozzarella sticks, house salad, soup), four...

Answered: 1 week ago

Question

★★★★★

Which statement would be considered metacommunication? Question 8 options: "Please arrive at 9 a.m." "I appreciate your effort." "Free coffee is available in the lounge." "We encourage employees to...

Answered: 1 week ago

Question

★★★★★

M F M b h = A steel beam with a rectangular cross-sectional area has a height h 32 mm and breadth b = 16 mm. It has a through thickness crack of length a = 4 mm as shown in the figure. The fracture...

Answered: 1 week ago

Question

★★★★★

Determine the values of the variable for which the expression is defined as a real number. (Enter your answer using interval notation.) x-2x-35 Need Help? Read It 40. [-/1 Points] DETAILS SPRECALC7...

Answered: 1 week ago

Question

★★★★★

Provide 3 decimals for the final answer. Please show step by step solution. 6. Calculate the MA and output force of the brake pedal lever in the diagram. MASTER CYLINDER FULCRUM 3IN. Output Force = ?...

Answered: 1 week ago

Question

★★★★★

Support A is a pin. Support B is a roller. Each support can support a maximum of 9kN. Determine which support will fail first and at what value of w does this occur. HINT, create relationships of w...

Answered: 1 week ago

Question

★★★★★

A person has a net asset of $1 million, including a $300,000 net equity of a house (market value of the house mortgage). Specifically, the house has a market value of $600,000 including $400,000 for...

Answered: 1 week ago

Question

★★★★★

As economic conditions change, how do banks adjust their asset portfolio?

Answered: 1 week ago

Question

★★★★★

Set up a schedule, rounding to two decimal places, for the following natural exponential functions y = ekx where k they are all negatively sloped and convex: y= (a) y = e-0.5.x (b) y = ex (c) y=e-2

Answered: 1 week ago

Question

★★★★★

Using a calculator or tables, set up a schedule for each of the following natural exponential functions -y = ekx where k > 0, noting (1) the functions never equal zero, (2) they all pass through (0,...

Answered: 1 week ago

Question

★★★★★

Make a schedule for each of the following exponential functions with base a > 1 and then graphthem on the same grid to convince yourself that (1) the functions never equal zero, (2) they all pass...

Answered: 1 week ago

Previous Question Next Question