Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 30, 2024

The market portfolio has a standard deviation of 41.2%. Stock X has a return standard deviation of 38.1% and the correlation between its returns and

The market portfolio has a standard deviation of 41.2%. Stock X has a return standard deviation of 38.1% and the correlation between its returns and those on the market portfolio is -0.5 What is its CAPM ?

Select one: a. 0.66 b. -0.26 c. -0.46 d. 0.46

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

Recommended Textbook for

An Introduction To Real Estate Finance

Authors: Edward Glickman

1st Edition

0123786266, 9780123786265

More Books

Students also viewed these Finance questions

Question

★★★★★

A manufacturer of mp3 players is preparing to set the price on a new model. Demand is thought to depend on the price and is represented by the model D = 2,500 - 3P The accounting department estimates...

Answered: 1 week ago

Question

★★★★★

Profitability index: Suppose that you could invest in the same projects as in the previous problem but have only $25,000 to invest. Which projects would you choose?

Answered: 1 week ago

Question

★★★★★

How did the measured speed of a nervous impulse help open the door to the possibility of psychological science?

Answered: 1 week ago

Question

★★★★★

Zonker Inc. purchases 500 units of an item at an invoice cost of $30,000. What is the cost per unit? If the goods are shipped f.o.b. shipping point and the freight bill was $1,500, what is the cost...

Answered: 1 week ago

Question

★★★★★

One of the most discussed topics in finance recently is the global economic crisis that is said to have begun in the 2000s. Your professor instructed your team to write an article for the college...

Answered: 1 week ago

Question

★★★★★

Sarah is selling chocolate bars for a school fundraiser. Each chocolate bar is 5 inches long, 2 inches wide and 1 inch tall. The box the chocolate bars come packed in is 4 feet long, 2 feet wide and...

Answered: 1 week ago

Question

★★★★★

A construction company in London regularly participates in the bidding process for large scale construction projects in the capital. Over the last few years the company has enjoyed a stable success...

Answered: 1 week ago

Question

★★★★★

The average number of arrivals at a box office is 10 customers per hour. Only 1 customer can be served at the box office at any given time. It takes on average 3.5 minutes for a customer to be...

Answered: 1 week ago

Question

★★★★★

Explain the function of human heart and draw a clear diagram of human heart along with the proper labelling of each part.

Answered: 1 week ago

Question

★★★★★

How is the process of neurulation takes plain in mammals ? Elucidate with the help of suitable diagram.

Answered: 1 week ago

Question

★★★★★

What are the APPROACHES TO HRM?

Answered: 1 week ago

Question

★★★★★

Assuming GoPro were to select a new CEO, what steps would the board of directors have to go through to make that change happen?

Answered: 1 week ago

Question

★★★★★

According to the text, change can take one of two forms: incremental or discontinuous. In your opinion, are the changes pursued by Elon Musk incremental, discontinuous, or both? Explain your answer.

Answered: 1 week ago

Question

★★★★★

Assuming Nick Woodman were to continue at GoPro, which organizational techniques might you employ to improve performance, and why?

Answered: 1 week ago

Previous Question Next Question