The standard deviation of stock returns for Stock A is 31%. The standard deviation of the...
The standard deviation of stock returns for Stock A is 31%. The standard deviation of the market return is 24%. If the correlation between Stock A and the market is 0.40, then what is Stock A's beta? Round your answer to two decimal places.
Homework Answers
Beta = (Standard deviation for stock A × Correlation coefficient between Stock A and the Market) / Standard deviation of the market
Beta = (31% × 0.40) / 24%
Beta = 0.52
Add Answer to:
The standard deviation of stock returns for Stock A is 31%. The standard deviation of the...
The standard deviation of a stock's annual returns is 35.0%. The standard deviation of market returns...
The standard deviation of a stock's annual returns is 35.0%. The standard deviation of market returns is 26.0%. If the correlation between the returns of the stock and the market is 0.2, what is this stock's beta? Round to two decimal places. Numeric Answer:
The standard deviation of a stock's annual returns is 51.1%. The standard deviation of market returns...
The standard deviation of a stock's annual returns is 51.1%. The standard deviation of market returns is 20.9%. If the correlation between the returns of the stock and the market is 0.5, what is this stock's beta? Round to two decimal places
Expected Returns 0.17 0.11 0.30 Standard Deviation 0.12 0.05 Firm A's common stock Firm B's common...
Expected Returns 0.17 0.11 0.30 Standard Deviation 0.12 0.05 Firm A's common stock Firm B's common stock Correlation coefficient (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from college and is evaluating an investment in two companies' common stock. She has collected the following information abou the common stock of Firm A and Firm B: a. If Mary decides to invest 10 percent of her money in Firm A's common stock and 90...
6. Calculating a beta coefficient for a single stock Suppose that the standard deviation of returns...
6. Calculating a beta coefficient for a single stock Suppose that the standard deviation of returns for a single stock A IS A = 25%, and the standard deviation of the market return is on = 15%. If the correlation between stock A and the market is PAM - 0.6, then the stock's beta is prns against the market returns will equal the true value of Is it reasonable to expect that the beta value estimated via the regression of...
1) A stock has generated an annual average return of 9.5% with a standard deviation of...
1) A stock has generated an annual average return of 9.5% with a standard deviation of 40.7% during the last 10 years. If the average risk-free rate was 1.7%, what was this stock's Sharpe Ratio? Round to two decimal places. 2) The standard deviation of a stock's annual returns is 40.4%. The standard deviation of market returns is 24.3%. If the correlation between the returns of the stock and the market is 0.3, what is this stock's beta? Round to...
You are given the following information concerning a stock and the market Returns Market Stock Year...
You are given the following information concerning a stock and the market Returns Market Stock Year 15% 27% 19 2011 2012 19 2013 25 5 2014 -12 -22 2015 35 16 2016 15 27 a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Market Stock % Average return Standard deviation b. Calculate the...
You are given the following information concerning a stock and the market: Returns Year Market Stock...
You are given the following information concerning a stock and the market: Returns Year Market Stock 2011 15 % 27 % 2012 14 30 2013 15 6 2014 −14 −24 2015 37 16 2016 15 25 a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) b. Calculate the correlation between the stock and...
Stock A has an expected return of 7%, a standard deviation of expected returns of 35%,...
Stock A has an expected return of 7%, a
standard deviation of expected returns of 35%, a correlation
coefficient with the market of -0.3, and a beta coefficient of
-0.5. Stock B has an expected return of 12% a standard deviation of
returns of 10%, a 0.7 correlation with the market, and a beta
coefficient of 1.0. Which security is riskier? Why?
1. Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a...
Stock A has an expected return of 7%, a standard deviation of expected returns of 35%,...
Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of -0.3, and a beta coefficient of -0.5. Stock B has an expected return of 12% a standard deviation of returns of 10%, a 0.7 correlation with the market, and a beta coefficient of 1.0. Which security is riskier? Why? (show your work)
e. Figure 1 depicts the expected returns and standard deviations for five assets. Which assets are...
e. Figure 1 depicts the expected returns and standard deviations
for five assets. Which assets are not dominated by any other
asset?
Please answer E, G, H, I. Show work where you can so I can
better understand the solution.
Thanks.
Expected Return Risk (Standard Deviation) Figure 1: Plot for Question 1.e. g. A stock earned annual returns of 10%, 3%, and 12% over three consecutive years. During the same time period, market returns were 5%, 12%, and 8%. What...
The standard deviation of a stock's annual returns is 35.0%. The standard deviation of market returns is 26.0%. If the correlation between the returns of the stock and the market is 0.2, what is this stock's beta? Round to two decimal places. Numeric Answer:
Expected Returns 0.17 0.11 0.30 Standard Deviation 0.12 0.05 Firm A's common stock Firm B's common stock Correlation coefficient (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from college and is evaluating an investment in two companies' common stock. She has collected the following information abou the common stock of Firm A and Firm B: a. If Mary decides to invest 10 percent of her money in Firm A's common stock and 90...
6. Calculating a beta coefficient for a single stock Suppose that the standard deviation of returns for a single stock A IS A = 25%, and the standard deviation of the market return is on = 15%. If the correlation between stock A and the market is PAM - 0.6, then the stock's beta is prns against the market returns will equal the true value of Is it reasonable to expect that the beta value estimated via the regression of...
You are given the following information concerning a stock and the market Returns Market Stock Year 15% 27% 19 2011 2012 19 2013 25 5 2014 -12 -22 2015 35 16 2016 15 27 a. Calculate the average return and standard deviation for the market and the stock. (Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Market Stock % Average return Standard deviation b. Calculate the...
Stock A has an expected return of 7%, a
standard deviation of expected returns of 35%, a correlation
coefficient with the market of -0.3, and a beta coefficient of
-0.5. Stock B has an expected return of 12% a standard deviation of
returns of 10%, a 0.7 correlation with the market, and a beta
coefficient of 1.0. Which security is riskier? Why?
1. Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a...
e. Figure 1 depicts the expected returns and standard deviations
for five assets. Which assets are not dominated by any other
asset?
Please answer E, G, H, I. Show work where you can so I can
better understand the solution.
Thanks.
Expected Return Risk (Standard Deviation) Figure 1: Plot for Question 1.e. g. A stock earned annual returns of 10%, 3%, and 12% over three consecutive years. During the same time period, market returns were 5%, 12%, and 8%. What...
Most questions answered within 3 hours.
-
I need help with my javascript project, I've started on it but I
can't seem to...
asked 1 hour ago -
Identification of unknown Bacteria by sequencing
rDNA
Having a little trouble understanding the PCR process. This...
asked 1 hour ago -
please answer the four of the questions
4. how are warehouse distribution centers, and cross-
docking...
asked 2 hours ago -
X Company currently makes a part and is considering buying it
from a company that has...
asked 3 hours ago -
The height of a helicopter above the ground is given by h =
2.90t3, where h...
asked 3 hours ago -
Consider the natural join of the relation R(A,B) and S(A,C) on
attribute A. Neither relations have...
asked 4 hours ago -
You are a network planner tasked with developing an IP structure
for the following networks. The...
asked 5 hours ago -
Christmas Express makes wreaths in batch sizes of 30. The
cutting & assembly process takes 4...
asked 5 hours ago -
Suppose a brewery has a filling machine that fills 12-ounce
bottles of beer. It is known...
asked 6 hours ago -
For this problem, carry at least four digits after the decimal
in your calculations. Answers may...
asked 9 hours ago -
Ask a user for three positive integer numbers. Use an input
validation loop to make sure...
asked 9 hours ago -
The most primitive form of data from data analysis perspective
is a. nominal scale b. ordinal...
asked 9 hours ago