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A stock has an expected return of 14% and a standard deviation of 28%. The Market has an expected return of 9% and a standard deviation of 12%. The correlation coefficient between the stock and the market is .7. The Risk Free Rate is 3%. What is the Beta for the stock?

a) .83                        b) .95               c) 1.09             d) 1.63

Assuming that the returns are normally distributed, what is the probability that the stock will have a positive return?

a) 40%                     b) 55%             c) 70%             d) 85%

What is the Sharpe Ratio for the market?

a) .3              b) .5                 c) .7                 d) .9

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92708040

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