Question
The current expected return on the ABC stock is 10%, the riskless rate of interest is 2%, and the return on the market portfolio is
The current expected return on the ABC stock is 10%, the riskless rate of interest is 2%, and the return on the market portfolio is 8% and the standard deviation of returns on the market portfolio is 20%. The correlation between returns on the market portfolio and the ABC Corporation is 0.8
- According to CAPM, what is the current beta of ABC?
- What is the standard deviation of returns on the ABC Corporation?
- What will be the expected return on the ABC Corporation if its correlation with the market portfolio decreases to 0.15?
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Finance And Economics Discussion Series The Evolution Of The Demand For Temporary Help Supply Employment In The United States
Authors: United States Federal Reserve Board, Marcello Estevao, Saul Lach
1st Edition
1288717881, 9781288717880
