Security characteristic line for company stock

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Reference no: EM131844616

1. You run a security characteristic line for a company's stock. The variance is .20. The variance of the error or residuals is .07. The variance for the market is .18. What is the Beta? What is the R square of your regression ?

2. You invest 50% of your money in a stock with a Beta of 1.525, 40% in a stock with a Beta of 1.7, and 10% in a stock with a Beta of .6. What would be the required return on this portfolio.

3. Payback and NPV. A project has a life of 10 years and a paycheck period of 10 years. Is the project NPV positive or negative? Explain.

Reference no: EM131844616

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