What proportion of the total risk

Assignment Help Finance Basics
Reference no: EM132698154

Assume that the single index model is valid. Stock A has a beta of 0.5 and a standard deviation of returns of 50%. The standard deviation of returns on the market portfolio is 20%.

What proportion of the total risk is due to systematic risk?

Reference no: EM132698154

Questions Cloud

Need for revised national and international reforms : In their article "The Libor Scandal: A Need for Revised National and International Reforms", Girasa and Kraus (2014), describe the events surrounding
Illustrate the concept of basis risk : a. Define the basis and illustrate the concept of basis risk. Using such concept, explain what is meant by a perfect hedge.
Which statements regarding the application of lower-of-cost : Which statements regarding the application of lower-of-cost-or-market (LCM) to inventory is false? Applying the LCM rule is optional
Main concerns for banks given the covid-19 : credit risk are main concerns for banks given the COVID-19 environment, as such would have a severe impact on the banking sector globally.
What proportion of the total risk : What proportion of the total risk is due to systematic risk?
When a company revises its estimate useful life : When a company revises its estimate useful life? It must disclose the change in the estimate but depreciation expense will not change.
What will bring the return back in line with equilibrium : If a financial asset has an expected return that is greater than what is necessary to compensate for its risk, what will bring the return back in line with equi
Explain the impacts on a depository institution : (a) Explain the impacts on a depository institution's balance sheet when it uses stored and purchased liquidity management to offset:
What is view on the audit opinion issued by raju : Dream Supermarket Limited, What is view on the audit opinion issued by Raju based on the information given above? Provide justifications.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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