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The following are the returns of Java and GSE Index: Year Java (%) GSE (%) 1 -2.2 -4.1 2 18 17.2 3 11 14 4
The following are the returns of Java and GSE Index:
Year
Java (%)
GSE (%)
1
-2.2
-4.1
2
18
17.2
3
11
14
4
3.2
5.9
5
-9.7
-6.9
6
4.3
5.6
7
25.2
21.3
8
3.3
5
i. Determine the Beta co-efficient for Java. ii. If the expected return on Java is 20% and the risk premium is 12%, what is the reward-to-risk ratio for Java?
The following are the returns of Java and GSE Index:
Year | Java (%) | GSE (%) |
1 | -2.2 | -4.1 |
2 | 18 | 17.2 |
3 | 11 | 14 |
4 | 3.2 | 5.9 |
5 | -9.7 | -6.9 |
6 | 4.3 | 5.6 |
7 | 25.2 | 21.3 |
8 | 3.3 | 5 |
i. Determine the Beta co-efficient for Java.
ii. If the expected return on Java is 20% and the risk premium is 12%, what is the reward-to-risk ratio for Java?
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Management and Cost Accounting
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
4th edition
978-1405888202
