Question

The expected return of Stock X is 9.19%. The expected return on the market is 10.61%....

The expected return of Stock X is 9.19%. The expected return on the market is 10.61%. The covariance between Stock X and the market is .45, while the variance of the market is .56. What is the t-bill rate?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the CAPM model. The return on stock X is 15%. The market index has a...
Consider the CAPM model. The return on stock X is 15%. The market index has a risk premium of 12% and a standard deviation of 14%. The T-bill rate is 2%. The covariance between X and the market index is ____. A. 0.0255 B. 0.0212 C. 0.1735 D. 0.1820
Expected return on two stocks for two particular market returns: Market Return            Aggressive Stock        Defensive Stock...
Expected return on two stocks for two particular market returns: Market Return            Aggressive Stock        Defensive Stock 5%                               2%                               8% 20%                             25%                             20% What are the betas of the two stocks? What is the expected rate of return on each stock if the market return is equally likely to be 5% or 20%? If the T-bill rate is 4% and the market return is equally likely to be 5% or 20%, draw the SML for this economy. Between aggressive and defensive...
State of Economy Probability Stock X Stock Y Recession 20% $400     ? Normal 60% $550...
State of Economy Probability Stock X Stock Y Recession 20% $400     ? Normal 60% $550     ? Expansion 20% $600     ? Expected Return (ER)    ? 9% Standard Deviation    ? 21% Correlation of the Stock to the market 0.8 0.2 Correlation of X and Y 0.6 The price of Stock X today is $500, market variance is 100% and T-Bill return is 2% a) Find the expected return of stock X b) Find the standard deviation of...
1. Expected return on two stocks for two particular market returns: Market Return Aggressive Stock Defensive...
1. Expected return on two stocks for two particular market returns: Market Return Aggressive Stock Defensive Stock 2% -5% 3% 22% 35% 15% a. What are the betas of the two stocks? b. What is the expected rate of return on each stock if the market return is equally likely to be 2% or 22%? c. If the T-bill rate is 3% and the market return is equally likely to be 2% or 22%, draw the SML for this economy....
1. Expected return on two stocks for two particular market returns: Market Return Aggressive Stock Defensive...
1. Expected return on two stocks for two particular market returns: Market Return Aggressive Stock Defensive Stock 2% -5% 3% 22% 35% 15% a. What are the betas of the two stocks? b. What is the expected rate of return on each stock if the market return is equally likely to be 2% or 22%? c. If the T-bill rate is 3% and the market return is equally likely to be 2% or 22%, draw the SML for this economy....
Suppose that the expected return and standard deviation of the market are 10 percent and 16...
Suppose that the expected return and standard deviation of the market are 10 percent and 16 percent, respectively. Stock A has a standard deviation of 45 percent and a correlation with the market of 0.64. What would the expected return of a portfolio that is equally split between stock A, the market and a risk-free Treasury bill be if the risk-rate is 4%?
Expected return on two stocks for two particular market returns:                         Market Return      
Expected return on two stocks for two particular market returns:                         Market Return         Aggressive Stock         Defensive Stock                                  5%                           0%                               6%                                30%                          40%                             20% What are the betas of the two stocks? What is the expected rate of return on each stock if the market return is equally likely to be 5% or 30%? If the T-bill rate is 4.5% and the market return is equally likely to be 5% or 30%, draw the SML for this economy....
Expected return on two stocks for two particular market returns: Market return/Aggressive stock/Defensive St        5%                 &nbsp
Expected return on two stocks for two particular market returns: Market return/Aggressive stock/Defensive St        5%                     -2%                         6%        25%                   38%                       12% a. What are the beta's of the two stocks? b. What is the expected rate of return on each stock if the market return is equally likely to be 5% or 25%? c. If the t-bill rate is 6% and the market return is equally likely to be 5% or 25%, draw the SML for this economy. please...
Q1) A stock fund has an expected return of 15% and a standard deviation of 25%...
Q1) A stock fund has an expected return of 15% and a standard deviation of 25% and a bond fund has an expected return of 10% and a standard deviation of 10%. The correlation between the two funds is 0.25. The risk free rate is 5%. What is the (a) expected return and (b) standard deviation of the portfolio with 70% weight in the stock portfolio and 30% weight in the bond portfolio? Q2) The variance of Stock A is...
1) Your stock has a β = 2.99, the expected return on the stock market is...
1) Your stock has a β = 2.99, the expected return on the stock market is 10.92%, and the yield on T-bills is 5%. What is the expected return on your stock? 2) Suppose you hold a portfolio of two stocks in the healthcare industry. The future outcomes for these stocks depend mainly on the next healthcare bill to be passed by Congress. The possible outcomes and returns are: Outcome Probability Return for Stock A Return for Stock B 1=Republican...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT