User Account

All Pages

Which stock has the highest expected return

Assignment Help Finance Basics
Reference no: EM132752823

You have the opportunity to invest in either stock A or stock B, and we know the following:

Stock A has a standard deviation of 0.40, and the correlation between A and the market portfolio is 0.4

Stock B has a standard deviation of 0.3, and the correlation between B and the market portfolio is 0.8

The market portfolio has a variance of 0.04.

a) Which stock has the highest beta?

b) Which stock has the highest expected return?

Reference no: EM132752823

Questions Cloud

What must the interest rate be : Consider a deposit of $200 made at the end of the year. Deposits grow at a rate of 5 percent each year for another 5 years. The goal is to save $2500.
Plan for either work or in personal life : Think about the last event you had to plan for either work or in your personal life.
Should the machine be replaced and why : Should the machine be replaced? A product is currently manufactured on a machine that is not fully depreciated for tax purposes
Describe a control procedure that would have prevented : The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure that would have prevented
Which stock has the highest expected return : You have the opportunity to invest in either stock A or stock B, and we know the following:
Issues of caterpillar internal environment : Identify and assess the two most important factors/issues of Caterpillar's internal environment.
Prepare the entry to record the departure of manning : Manning decides to leave the partnership. McNabb agrees to pay Manning $73 000 in a private transaction for his entire share in the business.
Determine the days cash on hand : Financial statement data for years ended December 31 for Holland Company follow: Determine the days' cash on hand for 20Y2 and 20Y3
Examine the validity of learners claims : Evaluate the 'Burden of Debt' and examine the validity of learners claims regarding the impact of internal and external debts considering cases in Fiji.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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