Fill in the blanks: According to the single-index model: = β * + + e.

Solutions

Expert Solution

Answer: = β * R_m + α + e

According to Single- Index Model, Stock Prices are related to the market index. This relation can be used to estimate the return of stock.

Return of Stock (R) = β * R_m + α + e.

where, R_m = Return on Market Index,

e = error term,

α = alpha coefficient

β = Beta coefficient

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

According to Markowitz full-covariance model or the single-index model, Which model will you perfer ? Explain...

According to Markowitz full-covariance model or the single-index model, Which model will you perfer ? Explain the advantages and disadvantages of the model you choose. (100words)

Fill in the blanks in the following separate income statementsa through e.

Fill in the blanks in the following separate income statementsa through e. (Amounts to be deducted should be indicated by a minus sign.)abcdeSales$72,000$44,500$36,000$25,200Cost of goods soldMerchandise inventory (beginning)7,50016,9606,1007,0004,470Total cost of merchandise purchases58,00037,0006,800Merchandise inventory (ending)(2,100)(8,700)(6,000)Cost of goods sold33,39017,0007,800Gross profit5,90047,600Expenses22,00011,53010,0705,1006,600Net income (loss)$15,970$(4,170)$42,500

Fill in the blanks in the following separate income statements a through e.

Fill in the blanks in the following separate income statements a through e. (Amounts to be deducted should be indicated by a minus sign.)

Fill in the blanks in the following separate income statements a through e.

Fill in the blanks in the following separate income statements a through e. (Amounts to be deducted should be indicated by a minus sign.)

A) Fill in the blanks. According to estimates by the office of the Treasury Inspector General...

A) Fill in the blanks. According to estimates by the office of the Treasury Inspector General of IRS, approximately 0.07 of the tax returns filed are fraudulent or will contain errors that are purposely made to cheat the IRS. In a random sample of 332 independent returns from this year, around __________ returns, give or take __________, will be fraudulent or will contain errors that are purposely made to cheat the IRS. 1) 23.24 , 21.60 2) 332 , 4.649...

Fill in the blanks in the following separate income statements a through e. (Amounts to be...

Fill in the blanks in the following separate income statements a through e. (Amounts to be deducted should be indicated by a minus sign.) a b c d e Sales $62,000 $44,700 $53,000 $26,700 Cost of goods sold Merchandise inventory (beginning) 8,800 16,040 6,700 7,100 4,380 Total cost of merchandise purchases 31,000 44,000 6,400 Merchandise inventory (ending) (2,400) (8,000) (7,000) Cost of goods sold 33,770 17,000 7,500 Gross profit 5,100 49,200 Expenses 10,000 10,590 11,630 4,800 7,800 Net income (loss)...

Fill in the blanks in the following separate income statements a through e (Amounts to be...

Fill in the blanks in the following separate income statements a through e (Amounts to be deducted should be indicated by a minus sign.) Sydney accepts delivery of $22,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $14,740.

C++ Fill in the blanks please You are required to fill in the blanks in this...

C++ Fill in the blanks please You are required to fill in the blanks in this program. Consider that: -In main, the variables price and quantity were given the names of p (double) and q (int), respectively. -In the getData function, the parameters associated with the main variables p and q were called pp and pq, respectively. // Prototype: Do not include the names // of the variables in the prototype void getData (FILLTHEBLANK , FILLTHEBLANK); int main () {...

The single-index model for stock i is Ri = 0.01+1.5RM + ei. The single-index model for...

The single-index model for stock i is Ri = 0.01+1.5RM + ei. The single-index model for stock j is Rj = 0.02+0.8RM + ej. The standard deviation of the market return is σM=0.2, the standard deviation of ei is σei=0.3 and the standard deviation of ej is σej=0.4. 1. Calculate the systematic risk, firm-specific risk, and total risk of stock i.

Fill in the blanks: Consider the following equilibrium and fill in the blanks with either increase...

Fill in the blanks: Consider the following equilibrium and fill in the blanks with either increase or decrease. I2(s) + 5F2(g) ⇌ 2IF5(g) A decrease in volume results in a Blank 1 in pressure which will Blank 2 the amount of IF5.

Subjects