Consider the following information: Stock Return if Market Return Is: Stock –10% 10% A 0 11 B –11 15 C –31 24 D 12 14 E 19 -6 What is the beta of each of the stocks?(Leave no cells blank - be certain to enter "0" wherever required. Use decimals, not percents, in your calculations. A negative value should be indicated by a minus sign. Round your answers to 1 decimal place.

Consider the following information: Stock Return if Market Return Is: Stock –10% 10% A 0 11 B –11 15 C –31 24 D 12 14 E 19 -6 What is the beta of each of the stocks?(Leave no cells blank - be certain to enter "0" wherever required. Use decimals, not percents, in your calculations. A negative value should be indicated by a minus sign. Round your answers to 1 decimal place.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 1P: The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market...

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Similar questions

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?
A stock has a beta of 1.2, the expected return on the market is 9 percent, and the risk-free rate is 1.5 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Please format answer in a percentage as "X.XX"
If Stock I is correctly priced right now, its Beta must be ______ . Round your answer to 2 decimal places (example: if your answer is 1.2357, you should enter 1.24). Margin of error for correct responses: +/- .02. expected return (implied by market price) Beta Stock I 12.5% ?? S&P500 11% T-bonds 4%
Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3.2% + 1.10RM + eA RB = –1.4% + 1.2RM + eB σM = 30%; R-squareA = 0.28; R-squareB = 0.12 What is the standard deviation of each stock? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA= 5.0% + 1.30RM + eA RB= -2.0% + 1.6RM + eB sigmaM= 20% ; R-squareA= 0.20 ; R-squareB= 0.12 What is the standard deviation of each stock (write as percentage, rounded to 2 decimal places)?
A stock has a beta of 1.07, the expected return on the market is 10.1 percent, and the risk- free rate is 4.9 percent. What must the expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
The reward-to-risk ratio for Stock X, in decimal form, is ______. Round your answer to 3 decimal places (example: if your answer is .04567, you should enter .046). Margin of error for correct responses: +/- .002. expected return (implied by market price) Beta Stock X 9.7% 0.87 S&P500 10% ? T-bonds 3% ?