Question
The index model has been estimated for stock A with the following results. What is the standard deviation of stock A's total return? RA =
The index model has been estimated for stock A with the following results. What is the standard deviation of stock A's total return?
RA = 0.04 + 1.4*RM+eA.
Assume M= 0.22; eA= 0.31.
Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321.
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Corporate Financial Management
Authors: Glen Arnold
5th edition
978-1292178066, 129217806X, 273758837, 978-0273758839
