Solution-Expected standard deviation of stock return

Expected standard deviation of stock return

Reference no: EM131061261

1) If the market risk premium is 5%, the risk-free rate is 3%, and the estimated expected return on stock is 7%, what must be the estimated "beta" for that stock?

2) Suppose there is 50% chance of a 1% gain on a stock and a 50% chance of a 1% loss on a stock. What is the expected standard deviation of this stock's return?

Reference no: EM131061261

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Expected standard deviation of stock return

Reference no: EM131061261

Reference no: EM131061261

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