Question
The standard deviation of the stock of Tesla is equal to 16% and its beta coefficient is equal to 0.8. The beta coefficient of Tesla
The standard deviation of the stock of Tesla is equal to 16% and its beta coefficient is equal to 0.8. The beta coefficient of Tesla is equal to 1.2. Assume the risk-free interest rate is equal to 0%. What can you say about the standard deviation of Tesla stock return?
Question 12 options:
| It is equal to 24% |
| It is equal to 36% |
| It is at least 16%, but it is neither 24% nor 36% |
| None of the above |
The expected return on the stock of Tesla is equal to 14% and its beta coefficient is equal to 0.8. Find the expected return on the stock of Tesla if its beta coefficient is equal to 1.2 and the risk-free interest rate is 5%
Question 13 options:
| 9.3% |
| 18.5% |
| 21% |
| Cannot be determined from the available information. |
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