(Answered) The following table shows betas and standard deviations for

Management Studies

The following table shows betas and standard deviations for four stocks.

Company Beta Standard deviation

IBM 1.1 20%

Ford 1.15 30%

Dairy Queen 0.95 40%

Walmart 0.75 35%

Which stock has the highest systematic risk?

Assume that the risk free rate is 4% and the market risk premium is 12%. You discover that stock ABC has a beta of 0. According to the capital asset pricing model (CAPM), what should be ABC's expected rate of return?

View complete question

Business Management, Management Studies

Category:- Business Management
Reference No.:- M92484989
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Management

What does the phrase raise me dont praise me imply about

What does the phrase "raise me don't praise me" imply about the relative effectiveness of financial incentives and recognition for some workers?

What would applying the idea of organizational culture tell

What would applying the idea of organizational culture tell you about the place you work, or of any other place that someone might work at?

Use the following article to answer the questions how would

Use the following article to answer the questions. How would you go about encouraging diversity hiring and promotion at GlobeBank? Take the position as the Director of Diversity Recruiting and outline your plan. This pla ...

What is marketing discipline what is most peoples

What is marketing discipline? What is most people's perception of marketing discipline? Name an organization that has done a great job marketing. What did they do to make you feel this way?

Write a program that populates an array named weekday from

Write a program that populates an array named weekday from the string SunMonTueWedThuFriSat, and then prints each day in uppercase. PERL Language

The organizational analysis will utilize a minimum of five

The organizational analysis will utilize a minimum of five external, What is the organization and how would you describe it? Who are the leaders of the organization? Is the organization successful? How do you determine w ...

Determine what traits you need to work on the most to

Determine what traits you need to work on the most to become a good leader. Then, explain whether these traits differ from the strengths you need to be a good manager

Describe the proceduresguidelines used by hr to conduct a

Describe the procedures/guidelines used by HR to conduct a job evaluation.

Traditional and agile schedule developments are quite

Traditional and Agile schedule developments are quite different. Agile project management was originally developed to do software development. Could a traditional process be successfully used to develop a new software pr ...

How do you evaluate the implementation of the strategic

How do you evaluate the implementation of the strategic plan? Please, explain.

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Management Expert