Solved

Stock a Has an Expected Return of 12 Percent and a Variance

Question 28

Multiple Choice

Stock A has an expected return of 12 percent and a variance of .0203.The market has an expected return of 11 percent and a variance of .0093.What is the beta of Stock A if the covariance of Stock A with the market is .0137?


A) .68
B) .76
C) 1.55
D) 1.47
E) 1.32

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q23: The principle of diversification tells us that:<br>A)concentrating

Q24: The slope of the security market line

Q25: A portfolio is entirely invested into BBB

Q26: Stock A has a beta of .69

Q27: Standard deviation measures _ risk while beta

Q29: Risk that affects at most a small

Q30: You have plotted the monthly returns for

Q31: Stock S is expected to return 12

Q32: As we add more diverse securities to

Q33: Your portfolio is comprised of 30 percent