The standard deviation of stock returns for stock

Assignment Help Financial Management

Reference no: EM13876327

The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market return is 20%. If the correlation between Stock A and the market is 0.70, then what is Stock A's beta?

Reference no: EM13876327

Questions Cloud

Movie review - who afraid of virginia woolf : Please watch the following movie and provide a one page report on it. Movie: Who's Afraid of Virginia Woolf

What is probability of producing a unit with zero defects : Because of the high price associated with these TV sets, the company defines a product defect as any unit with one or more defective components. On average, what is the probability of producing a unit with zero defects?

What is the net present value for each project : Suppose the cost of capital is 10% and the $1 million initial outlays are paid out by installments, that is, the $1 million initial outlays are present values for the regular payments each year, what is the Net Present Value for each project?

An analyst has modeled the stock of crisp trucking : An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free rate is 6%, the expected return on the first factor (r1) is 12%, and the expected return on the second factor (r2) is 8%. If Bi1= 0.7 and Bi2= 0.9, what is..

The standard deviation of stock returns for stock : The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market return is 20%. If the correlation between Stock A and the market is 0.70, then what is Stock A's beta?

Determine the tension in rope : In trying to move across a slippery icy surface, a 175-lb man uses two ropes AB and AC. Knowing that the force exerted on the man by the icy surface is perpendicular to that surface, determine the tension in each rope.

Semi-annual bonds-determine the yield-to-maturity : Two years ago, Trans-Atlantic Airlines sold $250 million worth of bonds at $1,000 each. These semi-annual bonds had a maturity of 12 years and a coupon rate of 12.5%. Today these bonds are selling for $1,000. Determine the yield-to-maturity.

What causes cash flow and net profit to diverge : Need the answers to the following questions : 1. what causes cash flow and net profit to diverge ? when will they be the same ? 2. what role does the five Cs of credit play in managing the receivables area?

Which of the given statements is most likely correct : On the basis of this report, which one of the following statements is most likely correct? An increase in conformance costs resulted in a higher-quality product and, therefore, a decrease in nonconformance costs.

User Account

All Pages