Question

In: Finance

NFLX's standard deviation is 46% and the market's standard deviation is 20%. The correlation between the...

NFLX's standard deviation is 46% and the market's standard deviation is 20%. The correlation between the returns of NFLX and the market is -0.4. What percent of NFLX's variance is systematic?

Provide your answer in percent, rounded to two decimals, omitting the % sign.

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 10 months ago
Next > < Previous

Related Solutions

what is the minimum-risk (standard deviation) portfolio of AT&T and Microsoft if the correlation between the...
what is the minimum-risk (standard deviation) portfolio of AT&T and Microsoft if the correlation between the two stocks is 0? 0.5? 1? -1? what do you notice about the change in the allocations between AT&T and Microsoft as the correlation coefficient moves from -1 to 0? to 0.5? to +1? why might this be? what is the standard deviation of each these minimum-risk portfolios?
A town’s December high temperatures average 46 oF with a standard deviation of 9 oF, while...
A town’s December high temperatures average 46 oF with a standard deviation of 9 oF, while in June the mean height temperature is 75 oF with a standard deviation of 8 oF. In which month is it more unusual to have a high temperature of 64 oF? a. June because the z-score is farther away from zero than for December b. June because the z-score is closer to zero than for December. c. December because the z-score is closer to...
1. What is the key difference between a population standard deviation and the standard deviation of...
1. What is the key difference between a population standard deviation and the standard deviation of a sampling distribution? 2. How does this effect the normal distribution for the sample? (i.e. shape)
Describe the difference between standard deviation and standard error.
Describe the difference between standard deviation and standard error.
Find the mean and standard deviation for each binomial random variable: a. n = 46, π...
Find the mean and standard deviation for each binomial random variable: a. n = 46, π = .60 (Round your mean value to 2 decimal places and standard deviation to 4 decimal places.) Mean Standard deviation b. n = 84, π = .40 (Round your mean value to 2 decimal places and standard deviation to 4 decimal places.) Mean Standard deviation c. n = 35, π = .85 (Round your mean value to 2 decimal places and standard deviation to...
Asset A has an expected return of 15% and standard deviation of 20%. Asset B has an expected return of 20% and standard deviation of 15%.
      1. Asset A has an expected return of 15% and standard deviation of 20%. Asset B has an expected return of 20% and standard deviation of 15%. The riskfree rate is 5%. A risk-averse investor would prefer a portfolio using the risk-free asset and _______.            A) asset A            B) asset B            C) no risky asset            D) cannot tell from data provided2. The Sharpe-ratio is useful for            A) borrowing capital for investing            B) investing available capital            C) correctly...
1. Assume investment X has a standard deviation of 20%, investment Y has a standard deviation...
1. Assume investment X has a standard deviation of 20%, investment Y has a standard deviation of 20%, and X and Y have a correlation of 0.5. If 50% is invested in X and 50% is invested in Y then which is following is true? a. The portfolio standard deviation will be greater than 20% b. The portfolio standard deviation will be less than 20% 2. Which of the following is true? a. Total risk decreases as the number of...
What is the difference between the standard deviation and the standard error? Is the standard error...
What is the difference between the standard deviation and the standard error? Is the standard error a standard deviation?
Covariance and Correlation Based on the following information, calculate the expected return and standard deviation of...
Covariance and Correlation Based on the following information, calculate the expected return and standard deviation of each of the following stocks. Assume each state of the economy is equally likely to happen. What are the covariance and correlation between the returns of the two stocks? STATE OF ECONOMY RETURN ON STOCK A RETURN ON STOCK B Bear Normal Bull -.032 .124 .193 -.103 -.025 .469
Covariance and Correlation Based on the following information, calculate the expected return and standard deviation of...
Covariance and Correlation Based on the following information, calculate the expected return and standard deviation of each of the following stocks. Assume each state of the economy is equally likely to happen. What are the covariance and correlation between the returns of the two stocks? STATE OF ECONOMY RETURN ON STOCK A RETURN ON STOCK B Bear Normal Bull -.032 .124 .193 -.103 -.025 .469
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT