Solution-Variation in the market excess return

Variation in the market excess return

Assignment Help Finance Basics

Reference no: EM133002781

Index model for the excess return of stock XYZ is estimated with the following output: R(xyz) = 0.80% + 1.10 R(m) + e (xyz)

Market standard deviation (sigma M) = 22%; residual standard deviation = 30%

What proportion of variation in XYZ excess return is explained by variation in the market excess return?

Reference no: EM133002781

Questions Cloud

What will be the balance in allowance for doubtful accounts : What will be the balance in "Allowance for Doubtful Accounts" on the 12/31/Year5 published balance sheet? (This would be the adjusted balance, of course.)

Social Media in Emergency Management Assignment : Social Media in Emergency Management Assignment - Innovative uses in Social Media - Does social media help or hinder emergency management/homeland security

Find annual interest rate in the uk : Assume the following: you have $10,000 to invest; the current spot rate of British pounds is $1.800; the forward rate of the pound is $1.780; the annual interes

Compute the bond value of coupon fifteen-year bond : Compute the bond value of a 7.5% coupon 15-year bond? Suppose the market interest rate is 8.25%. Please assume semi-annual payment, and $1000 principal.

Variation in the market excess return : What proportion of variation in XYZ excess return is explained by variation in the market excess return?

What is the ear for a apr with continuous compounding : What is the EAR for a 12.2% APR with continuous compounding? Express your answer as a percentage, with 3 decimals, such as 4.123 percent.

Determine the correlation coefficient : The ABC and XYZ companies have the following expected risk and return data for next year: expected return (ABC) = 18%; expected return (XYZ) = 20%; standard dev

Determine the initial measurement of the land : Determine the initial measurement of the land if the note is non-interest bearing assuming further that the fair value of the land

Find the amount under building included in statement : On April 1, 2021 CALVIN COMPANY acquired a piece of land. Find the amount under building included in the 2021 statement of financial position is

User Account

All Pages

Variation in the market excess return

Reference no: EM133002781

Reference no: EM133002781

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT