Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The market return is 13% and the market standard deviation is 21%. The risk-free rate is 5%. 3R Groups stock has an expected return of
The market return is 13% and the market standard deviation is 21%. The risk-free rate is 5%. 3R Groups stock has an expected return of 15.4% and a standard deviation of 30%.
- What is the beta of 3R?
- 1.3
- 1.4
- 1.5
- 1.6
- Further to the previous question, what is the correlation coefficient of the returns of the market and 3R?
- -0.54
- -0.14
- 0.50
- 0.91
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