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ar Find the CAPM beta of the following stock, where Rg is stock return, R Is market return, Rg Is average of stock returns, RM is average of market returns, COV (RE, RM) is covariance between Rg and R, and VAR(RM) Is variance of market returns. Rg 0.10 -0.10 -0.10 -0.30 Rg= RE-RE RM 0.05 -0.05 0.10 0.30 M beta = COV(Rg, RM)/VAR(RM)= RM-RM RM= Fill in the blank in the above table and find the CAPM beta. (R-R) x (R-RM) COV(RE.RM)= (RM-RM)2 VAR(RM) =

ar Find the CAPM beta of the following stock, where Rg is stock return, R Is market return, Rg Is average of stock returns, RM is average of market returns, COV (RE, RM) is covariance between Rg and R, and VAR(RM) Is variance of market returns. Rg 0.10 -0.10 -0.10 -0.30 Rg= RE-RE RM 0.05 -0.05 0.10 0.30 M beta = COV(Rg, RM)/VAR(RM)= RM-RM RM= Fill in the blank in the above table and find the CAPM beta. (R-R) x (R-RM) COV(RE.RM)= (RM-RM)2 VAR(RM) =

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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14. Year 1 2 3 4 Find the CAPM beta of the following stock, where Rg is stock return, RM is market return, Rg Is average of stock returns, RM is average of market returns, COV (RE, RM) is covarlance between R, and R, and VAR(R) Is variance of market returns. RE 0.10 -0.10 -0.10 -0.30 RE= RE-RE CAPM beta= RM 0.05 -0.05 0.10 0.30 CAPM beta = COV(RE, RM)/VAR(RM)= RM-RM RM- Q 14. Fill in the blank in the above table and find the CAPM beta. (R-R) x (RM-R) COV(RE, RM)= (RM-RM)2 VAR(RM) -
Transcribed Image Text:14. Year 1 2 3 4 Find the CAPM beta of the following stock, where Rg is stock return, RM is market return, Rg Is average of stock returns, RM is average of market returns, COV (RE, RM) is covarlance between R, and R, and VAR(R) Is variance of market returns. RE 0.10 -0.10 -0.10 -0.30 RE= RE-RE CAPM beta= RM 0.05 -0.05 0.10 0.30 CAPM beta = COV(RE, RM)/VAR(RM)= RM-RM RM- Q 14. Fill in the blank in the above table and find the CAPM beta. (R-R) x (RM-R) COV(RE, RM)= (RM-RM)2 VAR(RM) -
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