Question
You are considering investing in Z plc. The correlation coefficient between the company's returns and the return on the market is 0.7. The standard deviation
You are considering investing in Z plc. The correlation coefficient between the company's returns and the return on the market is 0.7. The standard deviation of the returns for the company and the market are 8% and 5% respectively. Calculate the beta value of Z.
Select one,
a. 1.12
b. 2.00
c. 1.3
d. 1.00
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
17th edition
978-0273778172, 027377817X, 978-1292080505
