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
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%
Solutions
Expert Solution
NO EXCEL FUNCTION IS USED. JUST USED TABLE FORMAT. EVEN
AUTHORS OF THE MANY BOOKS HAVE RECOMMENDED THIS METHOD AS IT IS
EASIER TO PREPARE AND REMEMBER. 
jeff jeffy answered 1 year 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
-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
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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
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outstanding with a total market value of $56.9 million and a yield
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