Multiple Choice
Stock A has a standard deviation of 20 percent and a correlation coefficient of 0.64 with market returns.The expected return of the market is 12 percent with a standard deviation of 15 percent.The risk-free rate is 5 percent.What is the beta of Stock A?
A) 0.48
B) 0.75
C) 0.85
D) 1.33
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Suppose the returns on Security A are
Q4: What is the expected return for a
Q7: Use the following three statements to answer
Q9: Which of the following investments would a
Q10: The expected return of Security A is
Q11: In the above question,F<sub>1</sub> F<sub>2</sub><sub>,</sub> and F<sub>3</sub>
Q12: The expected return of Security A is
Q21: What is the role of the risk-free
Q28: The beta of a portfolio can be
Q90: Assuming the CAPM is valid, _ securities