Question
The index model for stock B has been estimated with the following result: R B = 0.05 + 0.5 R M + e B .
The index model for stock B has been estimated with the following result: RB = 0.05 + 0.5RM + eB. M = 0.30 and R2B = 0.70.
What would be the standard deviation of the return on stock B? (Enter your final answer as a percent rounded up to one decimal place without the % symbol).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Best Retirement Guides For Adults Successful Techniques To Make Your Money Last A Lifetime
Authors: Rebecca W. Anderson
1st Edition
979-8865146025
