Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The returns on a share have a correlation with the returns on the market index of 0.25. The standard deviation of the returns on the

The returns on a share have a correlation with the returns on the market index of 0.25. The standard deviation of the returns on the market portfolio is 15% and the standard deviation of the returns on the share is 24%. What is the share's beta? Group of answer choices

1.38. 0.16 . 1.60 . 0.55. 0.40.

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

Step: 3

blur-text-image

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

Business Analysis And Valuation Using Financial Statements Text And Cases

Authors: Krishna G. Palepu, Paul M. Healy, Victor L Bernard

3rd Edition

0324118945, 9780324118940

More Books

Students also viewed these Finance questions