What is neuvac beta

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Reference no: EM132813637

1) Based on the CAPM, you have found that the required rate of return on Guivo Corp. stock is 17.18%. The stock has a beta of 1.7. If the market risk premium is 8.71%, what is the implied risk-free rate of return?

2) USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Asset (A) Asset (B)
E(RA) = 14% E(RB) = 16%
(σA) = 13% (σB) = 18%
WA = 0.4 WB = 0.6
COVA,B = 0.0024

What is the standard deviation of this portfolio?

10.0%
12.5%
14.4%
15.5%
16.0%

3) The beta for a given company can vary from source to source based on:

-the number of observations used in the calculation
-the proxy for the market portfolio
-the time interval used in the calculation
-all of the above

4) Neuvac Corp. common stock has an expected return of 18% and a standard deviation of 8%. The market has an expected return of 8% and a standard deviation of 7%. If the stock's returns and the market's returns have a correlation coefficient of 0.37, what is Neuvac's beta?

Reference no: EM132813637

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