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There are two possible states of the economy, good and bad, each with 50% probability. If the economy is good, the market return is 40%,
| There are two possible states of the economy, good and bad, each with 50% probability. If the economy is good, | |
| the market return is 40%, the return on stock A is 52% and the return on stock B is 32%. If the economy is bad, the market return is -10%, the return on stock A is -13% and the return on stock B is -8%. | |
| a. What is the beta of each stock? | |
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Fundamentals Of Futures And Options Markets
Authors: Jonn C. Hull
8th International Edition
0133382850, 9780133382853
