Find the correlation of the pixma

Assignment Help Basic Statistics

Reference no: EM132041441

Question: You have the following information for Pixma Inc.: 5%, 15%, -10%, 25%.

1. Calculate the average return and standard deviation for a population for Pixma.

2. The S&P 500 market portfolio has a standard deviation of 20%. Pixma Inc. has a beta of .57. Find the correlation between Pixma and the S&P 500.HINT: The formula for beta can help you get the correlation.

3. The S&P market portfolio has a return of 15%.Ten-year T-bonds (risk-free asset) have a return of 2.5%.Use Pixma's beta of .57 to estimate the required return for the stock.

4. If you put $120,000 into Pixma and $40,000 into the S&P 500, find the return and standard deviation of your portfolio.

5. Based on additional research, you estimate the expected return on Pixma's stock at 16%.If the market is efficient, what will happen to the price of Pixma? Explain.

6. Pixma announces a new project.The new project has a beta of 1.5 and an expected return (IRR) of 20%.Is the project a good idea? Explain.

Reference no: EM132041441

Questions Cloud

Computing what is the net investment : Please answer in Excel : IBM is replacing an old assembly line that cost $80,000 five years ago, with a new, more efficient machine that will cost $225,000.

Explain your proposed amendment to the us constitution : Think especially about the ideas, themes, and nature of our nation's founding and political institutions.

Is the firm target growth rate consistent with other goals : Is the firm’s target growth rate consistent with its other goals? Calculate the sustainable growth rate.

Unconstitutional and catastrophic : Why did northern Democrats view the Emancipation Proclamation as "unconstitutional and catastrophic"?

Find the correlation of the pixma : The S&P 500 market portfolio has a standard deviation of 20%. Pixma Inc. has a beta of .57. Find the correlation between Pixma and the S&P 500.

Legacy of the great recession in rural texas : Provide relevant information about the Great Recession and how the film addresses the legacy of the Great Recession in rural Texas.

What did frederick douglass do that was so important : What did Frederick Douglass do that was so important for black history? I just need to know basic outline of him and his life and how he contributed to black

How much external financing is needed : How much External Financing is needed? How much new Debt must they Issue? How much new external equity should they issue?

Create own personal comprehensive definition of terrorism : Create your own personal comprehensive definition of terrorism. Identify the key criteria inherent in your personal definition, and explain their importance.

User Account

All Pages