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Determine what is the beta of the stock

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Problem 1: Consider a stock that has a covariance of returns to the market of 0.008. The standard deviation of the market is 0.1. What is the beta of this stock? Enter your answer rounded to 2 DECIMAL PLACES.

Problem 2: Suppose you invest 73%, 10%, and 17% of your wealth into a stock, the market, and a risk-free asset, respectively. The beta of the stock is 1.3. What is the beta of the portfolio? Enter your answer rounded to 3 DECIMAL PLACES.

Reference no: EM132928034

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