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The following information is for Questions 4,5,6,7,8,9,10, and 11. Consider the following results for two stocks, A and B : rArf=0.04+0.4(rMrf)+eArBrf=0.05+0.9(rMrf)+eBRegressionRA2=0.40RegressionRB2=0.15M=0.35 Question 4 1 pts
The following information is for Questions 4,5,6,7,8,9,10, and 11. Consider the following results for two stocks, A and B : rArf=0.04+0.4(rMrf)+eArBrf=0.05+0.9(rMrf)+eBRegressionRA2=0.40RegressionRB2=0.15M=0.35 Question 4 1 pts Find the standard deviation of stock A's return. List your answer in decimal form rounded to 4 decimal places (i.e. 0.2946). The margin for error is 0.0005. Question 5 1 pts Find the standard deviation of stock B's return. List your answer in decimal form rounded to 4 decimal places (i.e. 0.2946). The margin for error is 0.0005. Separate the variance of each stock into the systematic and firm-specific components of variance (not standard deviation). What's the systematic variance of stock A's return? List your answer in decimal form rounded to 4 decimal places (i.e. 0.2946). The margin for error is 0.0003. Question 7 1 pts What's the systematic variance of stock B's return? List your answer in decimal form rounded to 4 decimal places (i.e. 0.2946). The margin for error is 0.0003. Question 8 1 pts Separate the variance of each stock into the systematic and firm-specific components of variance (not standard deviation). What's the firm-specific variance of stock A's return? List your answer in decimal form rounded to 4 decimal places (i.e. 0.2946). The margin for error is 0.0003. What's the firm-specific variance of stock B's return? List your answer in decimal form rounded to 4 decimal places (i.e. 0.2946). The margin for error is 0.0003. Question 10 1 pts Find the covariance between each stock and the market index. The following hint will be very helpful A=M2Cov(rArf,rMrf). Please calculate the covariance between the returns of stock A and the market index and report your answer below. List your answer in decimal form rounded to 4 decimal places (i.e. 0.2946). The margin for error is 0.0003. Question 11 1 pts Find the covariance between each stock and the market index. The following hint will be very helpful A=M2Cov(rArf,r,rf). Please calculate the covariance between the returns of stock B and the market index and report your answer below. List your answer in decimal form rounded to 4 decimal places (i.e. 0.2946). The margin for error is 0.0003
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