Question
The index model has been estimated for stock A with the following results: RA,t= 0.01 + 0.80R M,t + e A,t and M= 0.20; (eA)
The index model has been estimated for stock A with the following results:
RA,t= 0.01 + 0.80RM,t+ eA,tand
M= 0.20; (eA) = 0.10.
The standard deviation of the return for stock A is
a.0.0356
b.0.6400
c.0.1600
d.0.1868
e.0.1887
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
Basic Finance An Introduction To Financial Institutions, Investments, And Management
Authors: Herbert B. Mayo
12th Edition
1337691011, 978-1337691017
