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) =

PLEASE DO THIS IN EXCEL

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Stock A has a correlation with the market of 0.53. Assuming that the standard deviation of returns for Stock A is 24.0% and that the standard deviation of returns for the market is 10.0%, what is beta for stock A? A 1.31 B. 1.27 C. 0.17 D. 0.22

2. The following table gives information on the return and variance of assets A and B, whose covariance is 0.0003: A B 0} 0,0009 0,0012 E (R₂) 0,05 0,06 a. Does the portfolio (1/3 of A and 2/3 of B) dominate the portfolio (2/3 of A and 1/3 of B)? b. Does the portfolio (1/2, 1/2) belong to the efficient frontier? c. If there were the possibility of lending and borrowing at 2%, would the portfolio (1/2, 1/2) belong to the new efficient frontier?

The beta of a firm's stock can be estimated as the slope of the best fitting straight line through a plot of the stock's excess returns (on the x axis) versus the excess market returns (on the y axis). True False

1. Using the following returns, calculate the average returns, the variance, standard deviations, and coefficient of variation for X and Y. Which stock is the least risky? Yr 1 2 3 Rx 12.20 9.65 0.00 6.50 Ry 4 8.00 -2.00 12.50 9.57

Given the following probability distribution, what is the expected return and the standard deviation of returns for Security J? The answer choice lists expected return and standard deviation in the respective order. State 1 2 3 Pri 0.2 O 12%; 5.18% O 15%; 3.16% O 15%; 6.50% 0.6 0.2 O 20%; 5.00% 15%; 10.00% rj 10% 15 20

The following are estimates for a stock A. Stock Expected ret. beta firm-specific variance, or Var(e) A 0.15 1.3 0.34 The market index has a standard deviation of 0.22, and the risk-free rate is 0.03 What percentage of stock A's total risk is attributable to systematic risk (or market risk)? Here consider variance as the risk measure. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.

A stock has a market beta of 0.86 and a standard deviation of 0.28. If the market standard deviation is 0.30, what is the covariance between the stock return and the market return?