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You choose the S&P 500 as your market proxy for the Single Index Model. You are interested in analyzing the stock of Microsoft (MSFT) using
You choose the S\&P 500 as your market proxy for the Single Index Model. You are interested in analyzing the stock of Microsoft (MSFT) using monthly returns, and find =2.90%,=0.98. If you also found out that the overall risk of the S\&P 500 is 22% and the residual risk of the company is 9%, what is the total risk of the MSFT stock (in Standard Deviation)? 31.12% 23.36% 27.98% 24.25% You choose the S\&P 500 as your market proxy for the Single Index Model. You are interested in analyzing the stock of Microsoft (MSFT) using monthly returns, and find =2.90%,=0.98. If you also found out that the overall risk of the S\&P 500 is 22% and the residual risk of the company is 9%, what is the total risk of the MSFT stock (in Standard Deviation)? 31.12% 23.36% 27.98% 24.25%
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