HomeworkLib
Question

A stock has a standard deviation of 24.4 percent and a covariance with the market of...

A stock has a standard deviation of 24.4 percent and a covariance with the market of 0.03. The market has a standard deviation of 12.2 percent. What is the beta of this stock?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
A stock has a standard deviation of 24.4 percent and a covariance with the market of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A stock has a correlation with the market of .45. The standard deviation of the market...

    A stock has a correlation with the market of .45. The standard deviation of the market is 21%, and the standard deviation of the stock is 35%. a. What is the covariance between the market and the stock? (This part is related to Chapter 6, correlation.) b. Calculate the stock beta.

  • Stock A has a standard deviation of 20 percent and a correlation coefficient of 0.64 with...

    Stock A has a standard deviation of 20 percent and a correlation coefficient of 0.64 with market returns. The expected return of the market is 12 percent with a standard deviation of 15 percent. The risk-free rate is 5 percent. What is the beta of Stock A?

  • a) Consider a stock that has a covariance of returns to the market of 0.0182. The...

    a) Consider a stock that has a covariance of returns to the market of 0.0182. The standard deviation of the market is 0.158. What is the beta of this stock? Enter your answer rounded to 2 DECIMAL PLACES. b) The CFO of MediSearch plc believes that investing into a project which will develop a new drug for fighting the flu virus, promises a long-term annual return of 8%. The expected return of the market index is RM = 11%, the...

  • A stock has a correlation with the market of 0.46. The standard deviation of the market...

    A stock has a correlation with the market of 0.46. The standard deviation of the market is 29%, and the standard deviation of the stock is 37%, what is the stock's beta? 1.70 0.59 0.36 0.41

  • Stock X has an expected return of 7 percent, a standard deviation of returns of 28...

    Stock X has an expected return of 7 percent, a standard deviation of returns of 28 percent, a correlation coefficient with the market of –0.5, and a beta coefficient of –0.6. Stock Y has an expected return of 14 percent, a standard deviation of 15 percent, a 0.7 correlation with the market, and a beta of 0.9. Which security would be riskier if it were held by itself as a single investment? a. Stock Y b. Both would be equally...

  • A stock has a standard deviation of 32.00% and a correlation with the overall market of...

    A stock has a standard deviation of 32.00% and a correlation with the overall market of 0.41. If the market portfolio has a standard deviation of 29.00%, what is the Beta for the stock? Submit Answer format: Number: Round to: 2 decimal places. A stock has a Beta of 1.39. The current risk free rate in the economy is 2.60%, while the market portfolio risk premium is 6.00%. What is the risk premium for holding this stock?

  • The stock of a restaurant franchise enterprise has a standard deviation of return of 10 percent,...

    The stock of a restaurant franchise enterprise has a standard deviation of return of 10 percent, while the stock of a grocery store chain has a standard deviation of return of 20 percent. The correlation coefficient between the two stocks is 0.5. If you invest 60 percent of your funds in the restaurant chain stock and 40 percent in the grocery store stock, what is the standard deviation of your portfolio? A) 10.3 percent B) 21.0 percent C) 12.2 percent...

  • Portfolio B has a standard deviation of 12% and a correlation with the market of 0.85....

    Portfolio B has a standard deviation of 12% and a correlation with the market of 0.85. If the standard deviation of the market is 15%, what is the beta for B? a. 0.54 b. 0.68. c. 0.80. d. Not enough information to determine. Which of the following statements is not correct? a. Correlation ranges from-1 to +1. b. Coefficient of determination ranges from 0 to +1. c. Covariance equals: Standard deviation for A times standard deviation for B divided by...

  • Air Canada stock has a standard deviation of 18%, while the market index standard deviation is...

    Air Canada stock has a standard deviation of 18%, while the market index standard deviation is 8%. If the correlation between Air Canada and the market index is 0.45, what is the beta of Air Canada stock? (Show your calculations)

  • Consider a stock that has a standard deviation of 10.4% and the correlation with the market...

    Consider a stock that has a standard deviation of 10.4% and the correlation with the market is 0.54. The standard deviation of the market is 16.3%. What is the beta of the stock? Enter your answer rounded to 2 DECIMAL PLACES. Enter your response below.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT