Question
The risk-free rate is 2 percent, the expected return on the PSEi is 14 percent, and its standard deviation is 23 percent. A local equity
The risk-free rate is 2 percent, the expected return on the PSEi is 14 percent, and its standard deviation is 23 percent. A local equity ABC stock has a standard deviation of 51 percent but is uncorrelated with the market.
- Calculate ABC’s beta and calculate ABC’s expected return.
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Investments Principles Of Portfolio And Equity Analysis
Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard
1st Edition
0470915803, 978-0470915806
