Estimated for stocks a and b

Assignment Help Business Management
Reference no: EM132571552

The index model has been estimated for stocks A and B with the following results:

RA = 0.01 + 0.8RM + eA.

RB = 0.02 + 1.1RM + eB.

σM = 0.30 σ(eA) = 0.20 σ(eB) = 0.10.

The covariance between the returns on stocks A and B is

Select one:

a. 0.0384.

b. 0.0406.

c. 0.1920.

d. 0.0050.

e. 0.0792.

Reference no: EM132571552

Questions Cloud

What is the future value : What is the future value of a $500 annuity payment over eight years if interest rates are 14 percent?
How to prepare the journal entry to dispose of the variance : How to Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach. Compute the over/underapplied overhead.
Advise wong regarding his liability as a former partner : Wong retired as a partner from a firm, where he was a partner for 20 years. Advise Wong regarding his liability as a former partner
Prepare incremental analysis showing current designs : Prepare incremental analysis showing whether Current Designs should make or buy the Revolution Seating System
Estimated for stocks a and b : The index model has been estimated for stocks A and B with the following results:
How much direct materials was purchased : Direct Materials on December 31, 2018 is one fourth of DIrect MAterials used for production during the year, HOW much Direct MAterials was purchased during 2018
What is the budgeted manufacturing overhead rate : What is the budgeted manufacturing overhead rate in the Boxing department? Compute the total manufacturing overhead cost
Determine the contribution margin per machine hour : Xcelerate Productions Limited manufactures and sells three different products of different qualities. Determine the contribution margin per machine hour
Retrenchment benefits that he entitled to get : What are the factors to be considered when assessing whether cost-effectiveness or financial reasons are sufficient to constitute

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd