FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The correlation coefficient between a security and the market portfolio is 0.7. The standard deviation of the security is 30% while the market portfolio has

The correlation coefficient between a security and the market portfolio is 0.7. The standard deviation of the security is 30% while the market portfolio has a standard deviation of 15%. The beta of the security is closest to:

a. 0.315

b. 1.4

c. 2.0

d. 0.21

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Managerial Economics Theory Applications and Cases

Managerial Economics Theory Applications and Cases

Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield

8th edition

978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777

Students also viewed these Finance questions

Question

5. Use movements, gestures, and voice inflectionwalk around the room, point, and speak softly and then more emphatically. (My husband has been known to jump up on his desk to make an important point...

Answered: 1 week ago

Question

★★★★★
The advection-diffusion equation is used to compute the distribution of concentration along the length of a rectangular chemical reactor (see Sec. 32.1). c / t = D 2 c / x 2 U c / x kc where c =...

Answered: 1 week ago

Question

★★★★★
Explain the essential differences between revenues and other financing sources and between expenditures and other financing uses. How is each of these items reported on the governmental funds...

Answered: 1 week ago

Question

★★★★★
Question 1: Suppose that patients' medical records are kept in a file with the following format: The file contains one or more patient records. Each patient record has one patient's name, then their...

Answered: 1 week ago

Question

★★★★★
Creating graphical display The newly created data set will be used to compare the BMI of smokers to non-smokers. Create the following graphs in Excel: Using the column labeled Smoker (not sorted by...

Answered: 1 week ago

Question

★★★★★
Case Study Given the recent Covid-19 pandemic, the academic staff of York Town Primary School (YTPS) has been mandated to work from home. This would mean that both teachers and students remain home...

Answered: 1 week ago

Question

★★★★★
Mid-Term Exam 10/18/22 19. In a reciprocating engine powered aircraft, would you fly faster, slower, or the same speed for maximum endurance versus maximum range? Why? UPPER SURFACE 20. (a) What is...

Answered: 1 week ago

Question

★★★★★
2. In many ransomware attacks, the perpetrators ask for far less money than the victims end up paying to recover from the attack. Would it not save money and time for victims to pay the ransom? Why...

Answered: 1 week ago

Question

★★★★★
Consider the network topology shown below. The topology consists of multiple routers interconnected by full-duplex links. Each link has a static cost associated with it, which represents the cost of...

Answered: 1 week ago

Previous Question Next Question