An investor is considering investment into stocks and be listed on national stock exchange of India limited for last 7 to 8 years the financial statistics about market and stocks of this company is available on web show average return on stop of a b and nifty as 0.15 ,0.25 and 0.06 respectively the variance of return on stock of a b and c is 6.3 or 5.86 and 2.25 beta coefficient of stock of a and b is 0.71 and 0.6 85 correlation coefficient is 0.424 and coefficient of determination is 0.18. 1. What is systematic risk off stock A? 2. Unsystematic risk of stock B 3. Total risk for stock A 4. Total risk for stock B 5. portfolio risk if investor plans to allocate equal amount of money on stock a and b
An investor is considering investment into stocks and be listed on national stock exchange of India limited for last 7 to 8 years the financial statistics about market and stocks of this company is available on web show average return on stop of a b and nifty as 0.15 ,0.25 and 0.06 respectively the variance of return on stock of a b and c is 6.3 or 5.86 and 2.25 beta coefficient of stock of a and b is 0.71 and 0.6 85 correlation coefficient is 0.424 and coefficient of determination is 0.18. 1. What is systematic risk off stock A? 2. Unsystematic risk of stock B 3. Total risk for stock A 4. Total risk for stock B 5. portfolio risk if investor plans to allocate equal amount of money on stock a and b
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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An investor is considering investment into stocks and be listed on national stock exchange of India limited for last 7 to 8 years the financial statistics about market and stocks of this company is available on web show average return on stop of a b and nifty as 0.15 ,0.25 and 0.06 respectively the variance of return on stock of a b and c is 6.3 or 5.86 and 2.25 beta coefficient of stock of a and b is 0.71 and 0.6 85 correlation coefficient is 0.424 and coefficient of determination is 0.18.
1. What is systematic risk off stock A?
2. Unsystematic risk of stock B
3. Total risk for stock A
4. Total risk for stock B
5. portfolio risk if investor plans to allocate equal amount of money on stock a and b
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