Question
In: Finance
The possible outcomes for the returns on Stock X and the returns on the market portfolio...
The possible outcomes for the returns on Stock X and the returns on the market portfolio have been estimated as follows:
|
Scenario |
Stock X |
Market portfolio |
|
1 |
-3% |
6% |
|
2 |
14% |
12% |
|
3 |
22% |
18% |
Calculate the market beta for Stock X. Round your answer to the nearest tenth.
|
A) 2.1 |
||
|
B) 0.7 |
||
|
C) 1.0 |
||
|
D) none of the above |
Solutions
jeff jeffy answered 4 weeks agoRelated Solutions
The possible outcomes for the returns on Stock X and the returns on the market portfolio...
The possible outcomes for the returns on Stock X and the returns
on the market portfolio have been estimated as follows:
Scenario
Stock X
Market Portfolio
1
-3%
6%
2
14%
12%
3
22%
18%
A) 2.1
B) 0.7
C) 1.0
D) none of the above
The possible outcomes for the returns on Stock X and the returns on the market portfolio...
The possible outcomes for the returns on Stock X and the returns
on the market portfolio have been estimated as
follows:
Scenario
Stock X
Market
portfolio
1
9%
10%
2
21%
13%
3
13%
11%
Each scenario is considered to be equally likely to occur.
Calculate the covariance of the returns of Stock X and the market
portfolio.
A) 0.03%
B) 0.57%
C)
1.62%
D) 0.06%
An investment opportunity has 4 possible outcomes. The possible returns in each of these outcomes are...
An investment opportunity has 4 possible outcomes. The
possible returns in each of these outcomes are -10.5%, -2.1%, 3.2%
and 23.5%. If each of these outcomes is equally likely, what is the
Expected Return (as measured by the population mean) of this
investment? Provide the answer as a % with 1 decimal rounded off.
If your answer is 3.56%, just enter/type "3.6"
An investment opportunity has 4 possible outcomes. The possible returns in each of these outcomes are...
An investment opportunity has 4 possible outcomes. The possible
returns in each of these outcomes are -23.2%, -5.9%, 9.3% and
33.5%. If each of these outcomes is equally likely, what is the
Expected Return (as measured by the population mean) of this
investment? Provide the answer as a % with 1 decimal rounded off.
If your answer is 3.56%, just enter/type "3.6"
An investment opportunity has 4 possible outcomes. The possible returns in each of these outcomes are -16.2%, -8.7%, 1.7% and 38%.
An investment opportunity has 4 possible outcomes. The
possible returns in each of these outcomes are -16.2%, -8.7%, 1.7%
and 38%. If each of these outcomes is equally likely, what is the
Expected Return (as measured by the population mean) of this
investment? Provide the answer as a % with 1 decimal rounded off.
If your answer is 3.56%, just enter/type"3.6"
First and Ten Corporation’s stock returns have a covariance with the market portfolio of .0456. The...
First and Ten Corporation’s stock returns have a covariance with
the market portfolio of .0456. The standard deviation of the
returns on the market portfolio is 19 percent and the expected
market risk premium is 7.1 percent. The company has bonds
outstanding with a total market value of $55.8 million and a yield
to maturity of 6 percent. The company also has 5 million shares of
common stock outstanding, each selling for $43. The company’s CEO
considers the firm’s current...
First and Ten Corporation’s stock returns have a covariance with the market portfolio of .0493. The...
First and Ten Corporation’s stock returns have a covariance with
the market portfolio of .0493. The standard deviation of the
returns on the market portfolio is 22 percent and the expected
market risk premium is 6.8 percent. The company has bonds
outstanding with a total market value of $55.5 million and a yield
to maturity of 5.7 percent. The company also has 4.7 million shares
of common stock outstanding, each selling for $46. The company’s
CEO considers the firm’s current...
First and Ten Corporation’s stock returns have a covariance with the market portfolio of .0511. The...
First and Ten Corporation’s stock returns have a covariance with
the market portfolio of .0511. The standard deviation of the
returns on the market portfolio is 22 percent and the expected
market risk premium is 6.4 percent. The company has bonds
outstanding with a total market value of $56.9 million and a yield
to maturity of 6.7 percent. The company also has 6.1 million shares
of common stock outstanding, each selling for $32. The company’s
CEO considers the firm’s current...
Neon Corporation’s stock returns have a covariance with the market portfolio of .0345. The standard deviation...
Neon Corporation’s stock returns have a covariance with the
market portfolio of .0345. The standard deviation of the returns on
the market portfolio is 25 percent, and the expected market risk
premium is 8.8 percent. The company has bonds outstanding with a
total market value of $55.13 million and a yield to maturity of 7.8
percent. The company also has 4.63 million shares of common stock
outstanding, each selling for $23. The company’s CEO considers the
current debt–equity ratio optimal....
Neon Corporation’s stock returns have a covariance with the market portfolio of .0345. The standard deviation...
Neon Corporation’s stock returns have a covariance with the
market portfolio of .0345. The standard deviation of the returns on
the market portfolio is 25 percent, and the expected market risk
premium is 8.8 percent. The company has bonds outstanding with a
total market value of $55.13 million and a yield to maturity of 7.8
percent. The company also has 4.63 million shares of common stock
outstanding, each selling for $23. The company’s CEO considers the
current debt–equity ratio optimal....
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