Solution-What is the stock beta, The market portfolio has

What is the stock beta

Reference no: EM133070748

The market portfolio has an expected return of 9 percent with a 10 percent volatility. The risk-free rate is 4 percent. A stock has a 20 percent volatility and a correlation coefficient of minus 0.10 with the market.

-What is the stock's beta? What does its sign indicate?

-What is the stock's expected return? Explain why it is lower than the risk-free rate.

Reference no: EM133070748

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What is the stock beta

Reference no: EM133070748

Reference no: EM133070748

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