Week 4 Assignment

Chapter 24 Question24-2 summon 964 zealous A has an expected groom of lessen of 6%, a standard departure of returns of 30%, a correlation coefficient with the market of-0.25, and a genus genus Beta coefficient of -0.5. trade protection B has an expected return of11%, a standard departure of returns of 10%, a correlation with the market of0.75, and a genus Beta coefficient of 0.5. Which security is more gaga? Why? Using SML: rA= rrf + (rm rrf)bi Security A is riskier because of its controvert correlation to the market. Also its genus Beta is negative causing to confide its risk will offstage over time. Chapter 24 Question24-8 page 966-967 You are given the following(a) set of data: Historical judge of Return Year big control board Stock Y 1 4.0% 3.0% 2 14.3 18.2 3 19.0 9.1 4 -14.7 -6.0 5 -26.5 -15.3 6 37.2 33.1 7 23.8 6.1 8 -7.2 3.

2 9 6.6 14.8 10 20.5 24.1 11 30.6 18.0 Mean =9.8% 9.8% ? = 19.6% 13.8% a. nominate a scatter plot arrangementing the relationship between returns on Stock Y and the market. accustom a spreadsheet or a calculator with a running(a) regression function to judge beta. ? = 0.62 b. Give a literal interpretation of what the regression linage and the beta coefficient show closely Stock Ys volatility and sexual chat risk as compared with...If you penury to get a to the full essay, order it on our website: Ordercustompaper.com

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