Compute the beta of drucker corporation stock

Assignment Help Financial Management

Reference no: EM131948008

Financial analysts have estimated the returns on shares of Drucker Corporation and the overall market portfolio under various economic conditions as follows. The return for Drucker in the following three economic states of nature are forecasted to be: -16% in recession, +11% in moderate growth, and +35% in a boom. Estimates for the market as a whole in the same economic states are -12% in recession, +10% in moderate growth, and +23% in boom. The analyst considers each state to be equally likely. Using these data, compute the beta of Drucker Corporation's stock.

Place your answer as a number with at least three decimal places.

Reference no: EM131948008

Questions Cloud

Authentic data on organizational behavior : How does this impact the broader context of an organization, particularly when trying to gather authentic data on organizational behavior?

How do they assist in keeping coca-cola strategies : How would you describe Coca-Cola's control systems (budgets, inventory control, annual objectives, functional strategies, policies and procedures

What is the? bond yield to maturity : The bond is currently selling for ?$1159.66 and has 2 years to maturity. What is the? bond's yield to maturity?(YTM)?

Customer arriving during the morning rush wait to be served : During the two hours of the morning rush from 8 a.m. to 10 a.m., 100 customers per hour arrive at the coffee shop. The coffee shop has a capacity

Compute the beta of drucker corporation stock : The analyst considers each state to be equally likely. Using these data, compute the beta of Drucker Corporation's stock.

Choose a company to research : Choose a company to research. Utilize secondary data from a minimum of 5 and a maximum of 10 credible sources.

What is standard deviation of portfolio consisting : What is the standard deviation of a portfolio consisting of 50% Toyota and 50% Honda?

Protection of intellectual property : Until Chinese officials crack down on intellectual property theft, there is little recourse for companies manufacturing there.

What is the difference between and and or operators : What is the difference between AND and OR operators and why do we care about them. When might you use them and for what purpose.

User Account

All Pages