Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are given the following information concerning a stock and the market: Returns Year Market Stock 2014 18 % 30 % 2015 14 14 2016

You are given the following information concerning a stock and the market:

Returns
Year Market Stock
2014 18 % 30 %
2015 14 14
2016 20 4
2017 8 17
2018 35 16
2019 15 22

Market Stock

Average Return:

15.67% 11.50%
Standard Deviation: 13.87% 16.42%

b. Calculate the correlation between the stock and the market, as well as the stocks beta. (Use Excel to complete the problem. Do not round intermediate calculations. Round your correlation answer to 2 decimal places and beta answer to 4 decimal places.)

Correlation:

Beta:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

Uses effective delegation to develop others.

Answered: 1 week ago