The annual standard deviation of return on stock

Assignment Help Financial Management

Reference no: EM13925219

The annual standard deviation of return on Stock A's equity is 37 percent and the correlation coefficient of these returns, with those on a well-diversified portfolio, is 0.62. Comparable numbers of Stock B are 34 percent and 0.94. Which stock is riskier? Why?

Reference no: EM13925219

Questions Cloud

Integrate by discussion the properties of life : Integrate by discussion the properties of life, basic chemical terminology, and molecules and compounds of a cell necessary for life. Include the basic anatomy and physiology of a cell and describe how cell respiration, photosynthesis, and cell repro..

Balance sheet and income statement : Could someone show me how these would appear on a balance sheet and income statement in the format

Debt with both face and market value-firms cost of equity : Global Supply Inc has debt with both a face and a market value of $3,000. This debt has a coupon rate of 7 percent and pays interest annually. The expected earnings before interest and taxes are $1,200, the tax rate is 34 percent, and the unlevered c..

An accident victim has received structured settlement : An accident victim has received a structured settlement. According to the terms of the agreement, the victim will receive $10,000 per year at the end of each year for the next 15 years. Additionally, the victim will receive $20,000 in 10 years. What ..

The annual standard deviation of return on stock : The annual standard deviation of return on Stock A's equity is 37 percent and the correlation coefficient of these returns, with those on a well-diversified portfolio, is 0.62. Comparable numbers of Stock B are 34 percent and 0.94. Which stock is ris..

Prepare the journal entry to record the payroll tax expense : Prepare the journal entry to record the payroll tax expense for Auto Service Co. for December 2013.

Biologists have come up with a list of eight characteristics : Biologists have come up with a list of eight characteristics which are shared by all living organisms namely

Compute the profitability index of both projects : Note the following information on two mutually exclusive projects under consideration by Monroe Food Markets, Inc. Project A-Cash flows Year 0 $-30,000 1 $10,000 2 $10,000 3 $10,000 4 $10,000 5 $10,000 Project B-Cash flows Year 0 $-60,000 1 $20,000 2..

What is the beta for the food division : As a result of stockholder pressure, RJR Nabisco is considering spinning off its food division. You have been asked to estimate the beta for the division. You decide to so by obtaining the beta of comparable publicly traded firms (often called pure p..

User Account

All Pages