Question
True or false? According to the CAPM, a stock with a higher standard deviation will have a higher expected return. Calculate the beta of stock
True or false? According to the CAPM, a stock with a higher standard deviation will have a higher expected return.
Calculate the beta of stock CardHouse Inc, if you know that its correlation with the market is 0.04. The market's standard deviation is 31.3% and CardHouse Inc.'s standard deviation is 21.1%. Provide your answer rounded to two decimals
Your portfolio contains $4,300 worth of PG and $2,400 worth of HD stocks. What is the expected return of your portfolio, if PG's beta is 0.8, HD's beta is 0.3, the risk free rate is 3.8% and the market's expected return is 10.8%? Assume that the CAPM holds. Provide your answer in percent, rounded to two decimals, omitting the % sign.
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