Question
The market has a standard deviation of 25% whereas the stock XYZ has a standard deviation of 30%. The correlation coefficient between the stock return
The market has a standard deviation of 25% whereas the stock XYZ has a standard deviation of 30%. The correlation coefficient between the stock return and the market return is 0.7. The beta of stock XYZ is (to 2 decimal places): A. 0.11 B. 0.58 C. 0.05 D. 0.84 State the answer, show your calculations and interpret the result.
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
