Calculate the total variance of stock X

Assignment Help Financial Accounting
Reference no: EM133003379

Question - Stock X has a beta of 2.1 and a residual standard deviation of 22%. The market index portfolio has a standard deviation of 12%. Calculate the total variance of stock X.

Reference no: EM133003379

Questions Cloud

What is bank of america gross pro?t margin : What is Bank of America's gross pro?t margin on this loan? (Round answer to 1 decimal places, e.g. 15.2.) Gross pro?t margin
Average inspection time for a car : The federal government is undertaking a massive process analysis of the notoriously chaotic border Santa Barbara and Tijuana. They have selected the San Ysidro
Plot both of the portfolios on the security market line : The beta of the first portfolio was 0.8 while the beta of the second was 1.1. Plot both of the portfolios on the security market line
One advantage of price-sales : One advantage of price/sales (P/S) multiples over price to earnings
Calculate the total variance of stock X : Stock X has a beta of 2.1 and a residual standard deviation of 22%. The market index portfolio has a standard deviation of 12%. Calculate the total variance
Calculate the heating - cooling loads and airflows : Calculate the heating/ cooling loads and airflows. Please provide clear calculation - Select an HVAC system considering the number of zones, building size
How much cash will you have from the sale : You have just sold your house for $1 000 000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800 000.
What is the annual cost of goods sold : Assume a firm's inventory level of $15,000 represents 40 days sales. What is the annual cost of goods sold
Calculate the bid and ask cross-rate USD-EUR : Using the information on the currency rates above, calculate the bid and ask cross-rate USD/EUR. Comment on how it compares to the direct quote

Reviews

Write a Review

Financial Accounting Questions & Answers

  Weakness in internal controls and measures to implement

weakness in internal controls and measures to implement better internal controls.the following control procedures are

  What will be the new beta of the portfolio for abc

To use the proceeds to buy $10,000 of stock in a steel company whose b is equal to 1.0. What will be the new beta of the portfolio?

  Prepare the journal entry to record wands replaced

Prepare the journal entry to record wands replaced under warranty for 2020. Ollivander's Inc. sells wands and offers a lifetime replacement warranty.

  Penn company assembles and sells computer

Penn Company assembles and sells computer boards in western Pennsylvania. In an effort to improve the planning and control of shipping expenses, management is trying to determine which of three variables

  What are some fundamental problems coca-cola might run up

What are some fundamental problems Coca-Cola might run up against when financing in international trade. Taking the role of CFO (chief financial officer)

  How much revenue and gross profit or loss will appear

How much revenue and gross profit or loss will appear in the company's income statement in the ?rst year of the contract

  How much would Blossom save by hedging

Assume that on the day the payment is due, the spot rate is $0.3416/real. How much would Blossom save by hedging with a forward contract

  Products by using a predetermined application rate

Huxtable charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year:  Tiffany charges manufacturing overhead to products by using a pred..

  Explain the difference between depreciation and impairment

Explain whether it is necessary to make adjustments for both depreciation and impairment in every accounting period. please provide a descriptive answer

  Prepare a balanced scorecard suitable for use by directors

Prepare a balanced scorecard suitable for the use by the directors and managers of Nestle Malaysia to align business activities to identified vision

  What is the dollar return on investment

The company paid a dividend of $4.08 per share during the year, and had an ending share price of $55.29. What is the dollar return on your investment?

  What amount should gas report as dividend income

Gas receive a P200,000 cash dividend, What amount should Gas report as dividend income in its statement of comprehensive income for the year 2019?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd