Regress the stocks past returns against the risk-free rate

Assignment Help Financial Management
Reference no: EM13726088

One way to calculate a stock's beta is to

a. calculate the stock's coefficient of variation.

b. calculate both the stock's mean return and the std.dev. of the returns.

c. regress the stock's past returns against the risk-free rate.

d. regress the stock's past returns against past market return.

e. draw a trend line using past measures of the stock's beta.

Reference no: EM13726088

Questions Cloud

Distinguish between primary and secondary data : List and explain the steps in the marketing research process. Trace a hypothetical study through the stages in this process. Distinguish between primary and secondary data. When should researchers collect each type of data? What is sampling? Explain ..
Describe business intelligence : Distinguish among surveys, experiments and observational methods of primary data collections. Cite examples of each method. Define and give an example of each of the methods of gathering survey data. Under what circumstances should researchers choose..
Remain the same except for the correlation coefficient : Consider two stocks. If all their characteristics remain the same except for the correlation coefficient, which value of the correlation would make a portfolio of these two stocks the least risky?
Full-service and limited-service research suppliers : Outline the development and current status of the marketing research function. What are the differences between full-service and limited-service research suppliers?
Regress the stocks past returns against the risk-free rate : One way to calculate a stock's beta is to- calculate the stock's coefficient of variation. calculate both the stock's mean return and the std.dev. of the returns. regress the stock's past returns against the risk-free rate.
What annual rate of return is earned : What annual rate of return is earned on a $3,200 investment when it grows to $6,900 in twenty years?
Use for measuring the risk of a random variable : The best measure to use for measuring the risk of a random variable would be:
Create a portfolio with an expected return : You have $258,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.3 percent, and Stock L, with an expected return of 10.9 percent.
Money by investing in common stock : Suppose the returns on large-company stocks are normally distributed. Also suppose large-company stocks had an average return of 12% and a standard deviation of 26.2%.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the implied expected rate of inflation

What is the implied expected rate of inflation and efficient markets and risk-neutral pricing, what yield should you expect to find on a 3-month T-bill forward contract deliverable in 3 months?

  Let ckdenote a european vanilla call option with strike

let ckdenote a european vanilla call option with strike price k. assume that all options are identical except for

  Stock market price is often based investors perceived risk

In November 2006, Citi groups stock (NYSE:C) was trading at $49.59. Following the credit crisis on 2007-2008 and by at the end of October 2009, Citigroup stock price has plummeted to $4,27 Several banks went under, and the other saw their stock price..

  Leverage can be the least expensive form of capital

It is noted that initially, leverage can be the least expensive form of capital. However, if potential lenders feel a firm is overly leveraged, they may charge a punitive rate, or refuse to lend all together. This can be disastrous if a firm needs to..

  Prepare the consolidated financial statements

Prepare all consolidation adjustment entries required to prepare the consolidated financial statements as at 30 June 2011.  Provide a brief heading for each adjustment that you prepare.

  Which ratios would a banker be most interested in when

Which ratios would a banker be most interested in when considering whether to approve an application for a short-term business loan? Explain.

  Estimate the expected growth rate

Caballos, Inc., has a debt to capital ratio of 18%, a beta of 1.4 and a pre-tax cost of debt of 7.6%. The firm had earnings before interest and taxes of $ 618 million for the last fiscal year, after depreciation charges of $ 249 million. The firm had..

  How to get the holding period return for a 980 selling

how to get the holding period return for a 980 selling security that purchased fiver years before at 798?prove that

  Program for student athletes in the department of athletics

Paul wants to donate the funds to establish a new academic support program for student athletes in the Department of Athletics. Specifically, he is prepared to donate $10 million today (Feb. 12, 2015), $10 million one year hence (Feb. 12, 2016), and ..

  What is the present value of your winnings

You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $600,000 per year. Thus, in one year, you receive $1.6 million. In two years you get $2.2 million, and so on. If the appropriate interest..

  List and explain the three financial factors that influence

List and explain the three financial factors that influence the value of a business.

  What will your annual loan payment be

Dinero Bank offers you a $60,000, five-year term loan at 7.5 percent annual interest. What will your annual loan payment be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

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