User Account

All Pages

What is the covariance between hp and the market

Assignment Help Macroeconomics
Reference no: EM131298692

Assume that the market has an expected return of 5.7% and volatility (risk or standard deviation) of 38%.Suppose the CAPM accurately describes the data you are using.IfHewlett-Packard (HP) has a 62.0% correlation with the market and a 25% volatility when the risk-free rate is 2.5%:

(a) What is the covariance between HP and the market?

(b) What is HP's beta?

(c) What is the expected return of HP?

(d) What percent of HP's total risk (variance) is idiosyncratic?

Reference no: EM131298692

Questions Cloud

Why might boeing''s decisions in making the dreamliner : Why doesn't Boeing manufacture all the components of the Dreamliner at its own factory in the United States?
How the strategies align with the companys vision statements : Explain how these strategies align with the company's vision and mission statements; Research the industry average financial ratios for the same ratios above and record in a second column.
What is agency theory : What is "agency theory?" How can setting the appropriate goals for the firm minimize the agency problem? Differentiate between profit maximization and wealth maximization
What is the law of diminishing marginal productivity : What is the law of diminishing marginal productivity? How does the law of diminishing marginal productivity affect the cost of productions? Can you provide an example from your workplace?
What is the covariance between hp and the market : (a) What is the covariance between HP and the market? (b) What is HP's beta? (c) What is the expected return of HP? (d) What percent of HP's total risk (variance) is idiosyncratic?
What will be their unit increase in productivity per hour : Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 120 boxes. What will be their unit increase in productivity per hour
Describe how you have prepared for your intended major : Describe how you have prepared for your intended major, including your readiness to succeed in your upper-division courses once you enroll at the university.
Which of the entries in list 1 are capital goods : Which of the entries in List 1 are consumption goods and services and which are government goods? Explain your choice.
Absolutely no background in economics : Create an analogy or metaphor that explains how banks create and destroy money-one that would be understood by someone with absolutely no background in economics.

Reviews

Write a Review

Macroeconomics Questions & Answers

  How does an active fiscal policy helps

How does an active fiscal policy helps or hinder long-run growth in the economy.

  Determining the demands of the public

Do you believe that there is an ethical or moral obligation to meet the demands of the public where consumables are concerned? Please provide an examples to support your thoughts.

  Determine the real rate of return for each bond

Determine the real (inflation-free) rate of return for each bond. Without knowing your MARR, can you make a choice between these two bonds?

  Determine the quantity demanded and quantity supplied

Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $50 is imposed in this market.Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling..

  What recommendation would give regarding time warner

1. Draw the payoff matrix (note that Time Warner and District 6SW are the only ones in the market. 2. Based on the payoff matrix what recommendation would you give regarding whether Time Warner should maintain its current price or reduce it to $84..

  Starting with the basic concept of covariance

Starting with the basic concept of covariance

  Draw a graph depicting the value of the year

B and R, a reputable East Coast Bank, has developed a portfolio of assets that is selling quite well on the market. This particular portfolio is a series of call options.

  Does garbage create externalities

Periodically you hear of garbage strikes. Is garbage pickup a public good? Does garbage create externalities? What should be done about it? Why does garbage collection seem to attract organized crime?

  Define globalization

Define globalization. Discuss why you think that (income poverty, hunger, disease, lack of adequate shelter, and exclusion-while promoting gender equality, education, and environmental sustainability) relate to globalization?

  Labor performance and product price

"A substantial number of relatively unskilled persons reported that they can't find work. At the same time, there're many unfilled jobs for relatively skilled people. Apparently, the problem is that there're more unskilled peop..

  Federal government expenditures

You should be able to explain the "crowding out" effect and how this effect might be the result of some specific stimulus to the economy such as a rapid increase in federal government expenditures (assuming the economy is at full employment).

  What are the tax consequences of this loan to joshua and to

Joshua loans his son, Seth, $100,000 interest-free for five years. Seth uses the money for a down payment on his home. Assume that the applicable federal rate of interest is 5 percent.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd