Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. suppose that the index model for stocks a is estim

Suppose that the index model for stocks A is estimated from excess returns with the...

80.2K

Verified Solution

Question

Finance

image
Suppose that the index model for stocks A is estimated from excess returns with the following results: Ra = 3% + 0.7Rm tea Where R is the return of stock A, Rm is the return of the market, and ea is the firm specific component. Standard deviation of the market - sigma(M)= 0.2 R-squared - R2 - 0.2. This is the amount of systematic variation that can be explained among the total variation of stock returns What is the standard deviation of stock A? O 0.0121 O 0.0313 O 0.0455 O 0.2

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

a) How is charge transferred in the process of friction? b) How is charge transferred in the...

Physics
Q

A current I flows through a paraboloidal surface uniformly The magnetic field due to the...

Physics
Q

An aeroplane is travelling horizontally at a height of 2000 m from the ground The...

Physics
Q

3 46 0 and 0 3 46 O 3 46 0 and 3 46 0...

Geometry
Q

On January 1, 20X5, Pirate Company acquired all of the outstanding stock of...

Accounting
Q

The employees of Vintage Clothes achieved all of the sales goals for 2017. Vintage decides...

Accounting
Q

Howell Corporation is analyzing it's production process. An internal investigation found that total manufacturing costs...

Accounting
Q

Corwider the following independert thipions for Trepica Vhata: Fere account was 5800 What was the...

Accounting
Q

Nonvalue-Added Costs Lemmons Inc. has the following two activities: (1) Retesting reworked...

Accounting
Q

23. Under variable costing product costs include Fixed manufacturing overhead Yes B. No C. Yes...

Accounting
Q

Use the Northstar Corp. Terancial statements and supplementary information given below to prepare a statement...

Accounting
Q

Payroll Accounts and Year-End Entries The following accounts, with the balances indicated, appear in the...

Accounting