Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a stock is expected to have an alpha of \1.70, an

A stock is expected to have an alpha of \1.70, an expected return of \8.02,...

70.2K

Verified Solution

Question

Finance

image A stock is expected to have an alpha of \1.70, an expected return of \8.02, and a standard deviation of \31.83. The market has an expected return of \16.40 and a standard deviation of \32.20. The risk free rate is \3.90. What is the standard deviation of the non-systematic component of the stock's return under the single index model? a. \21.13 b. \19.34 c. \27.62 d. \31.21 e. \22.54 f. \29.97 g. \26.10 h. \24.13

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the intervals where the graph of f(x)=2x^4-3x^2 is increasing, decreasing, concave up and concave down....

Basic Math
Q

subject: physiology: explain the pathophysiology and treatment of diabetic ketoacidosis

Medical Sciences
Q

What are some of the health biases against women in the medical research industry? What are some...

Psychology
Q

When traveling 40 mph (miles per hour), the distance that it takes Fred’s car to stop...

Basic Math
Q

Why might a person wish to be involved with a critical path activity? What are some...

General Management
Q

Use the diagram to complete the statement K 52 Given AJKL sin 38 equals tan...

Geometry
Q

If your miles per gallon is 32 with your old factory tires What will your...

Basic Math
Q

A ball is thrown vertically upward. After f seconds, its height / (in feet) is...

Basic Math
Q

Find the complex number associated with the point shown on the graph What is the...

Calculus
Q

please help me answer part B of this question. just so you know all these...

Accounting
Q

29. A company issues $10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2013....

Accounting
Q

The Sierra Company produces its product at a total cost of $1,400 per unit. Of...

Accounting