Solution-Calculate the security a expected return

Calculate the security a expected return

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Reference no: EM132988147

Question - Consider a security A, which has a standard deviation of investment returns of 4%. If:

the standard deviation of the market return is 5%;

the correlation between A's return and that of the Market is 0.75;

the risk-free rate is 5%;

and the expected return on the market is 10%;

then calculate:

I. Calculate the beta of security A?

II. Calculate the security A's expected return.

Reference no: EM132988147

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Calculate the security a expected return

Reference no: EM132988147

Reference no: EM132988147

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