FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The index model has been estimated from the excess returns for stock A with the following results: RA = 12.00% + 1.20RM + eA M

The index model has been estimated from the excess returns for stock A with the following results: RA = 12.00% + 1.20RM + eA M = 24.00% (eA) = 15.00% What is the standard deviation of the return for stock A?

image text in transcribed

The index model has been estimated from the excess returns for stock A with the following results: RA= 12.00% +1.20RM+ EA OM= 24.00% olea) = 15.00% What is the standard deviation of the return for stock A? (Round your answer to 2 decimal places.) Standard deviation %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Futures And Options Markets

Fundamentals Of Futures And Options Markets

Authors: Jonn C. Hull

8th International Edition

0133382850, 9780133382853

More Books

Students also viewed these Finance questions

Question

★★★★★
On January 1, 2014, Conway Ltd. had the following shareholders' equity accounts: Common shares, unlimited number of shares authorized, 1.5 million issued...........$1,650,000 Retained...

Answered: 1 week ago

Question

★★★★★
Interpersonal Communication: Conflict Resolution In teams assigned by your instructor, identify a conflict that one of you has experienced during your college years, such as a lab project where the...

Answered: 1 week ago

Question

★★★★★
Explain early information processing models of memory and recent cognitive science models, including working memory, cognitive load theory, and individual differences in working memory.

Answered: 1 week ago

Question

★★★★★
1. Jim Adams posts the column totals and individual transactions in "Other" columns to the appropriate general ledger account and updates each general ledger account balance. He places a posting...

Answered: 1 week ago

Question

★★★★★
AnnE Co. declared a cash dividend of $30,000 on December 20, 2020. The company made the dividend payment on January 15, 2021. Which one of the following journal entry is correct for transaction on...

Answered: 1 week ago

Question

★★★★★
3. There are two bonds on sale the investors can choose from: Bond A: 4-year, 10% coupon rate, $1,000 face value. Bond B: 30-year, 8% coupon rate, $1,000 face value. As we discussed in class,...

Answered: 1 week ago

Question

★★★★★
Carla Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 7 paid sick days annually. Vacation...

Answered: 1 week ago

Question

★★★★★
TAC Industries Inc. sells heavy equipment to large corporations and federal, state, and local governments. Corporate sales are the result of a competitive bidding process, where TAC competes against...

Answered: 1 week ago

Question

★★★★★
Suppose there is sudden increase in preference of chocolates. But the cost of production rises due to rise in the price of milk. Use a demand supply model, to determine what happens to the...

Answered: 1 week ago

Question

★★★★★
Which of the following does NOT illustrate how deviant behavior can impact a company? Employees don't feel safe. The company could face a lawsuit. The company's workforce is unaffected. It may limit...

Answered: 1 week ago

Question

★★★★★
In the figure below, we see that traditional one-person-one-vote (1p1v) majority voting results in an inefficient majority "yes" vote (two in favor, one opposed). Let's see whether the outcome is...

Answered: 1 week ago

Question

★★★★★
In what specifi c situations would it be diffi cult for you to use the Gift Formula?

Answered: 1 week ago

Question

★★★★★
How do you ensure that complaints are made known throughout your organization?

Answered: 1 week ago

Question

★★★★★
5.1 Using the uniform probability density function shown in Figure 5.7, find the probability that the random variable X is between 1.4 and 1.8.

Answered: 1 week ago

Previous Question Next Question