Given the following information.is it possible to infer anything about the standard deviation of an individual mining stock Howdy-Doo Ltd: Howdy-Doo Ltd shares have an expected return of 13%. The market porfolio has an expected return of 11% and standard deviation of 22%. The risk-free rate is 5%.\ Assume the market is currently fairly-price and that CAPM theory holds.Hint:the maximum value of correlation coefficient is 1. A.Yes,standard deviation is less than 29.33% B.Yes,the standard deviation is equal to 29.33% C.No,as it is not possible to calculate its beta D.No,as it is not possible to calculate standard deviation without a sample of returns E.Yes,the standard deviation is more than 29.33%
Given the following information.is it possible to infer anything about the standard deviation of an individual mining stock Howdy-Doo Ltd: Howdy-Doo Ltd shares have an expected return of 13%. The market porfolio has an expected return of 11% and standard deviation of 22%. The risk-free rate is 5%.\ Assume the market is currently fairly-price and that CAPM theory holds.Hint:the maximum value of correlation coefficient is 1. A.Yes,standard deviation is less than 29.33% B.Yes,the standard deviation is equal to 29.33% C.No,as it is not possible to calculate its beta D.No,as it is not possible to calculate standard deviation without a sample of returns E.Yes,the standard deviation is more than 29.33%
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
Problem 1PS
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Given the following information.is it possible to infer anything about the standard deviation of an individual mining stock Howdy-Doo Ltd: Howdy-Doo Ltd shares have an expected return of 13%. The market porfolio has an expected return of 11% and standard deviation of 22%. The risk-free rate is 5%.\ Assume the market is currently fairly-price and that CAPM theory holds.Hint:the maximum value of correlation coefficient is 1. A.Yes,standard deviation is less than 29.33% B.Yes,the standard deviation is equal to 29.33% C.No,as it is not possible to calculate its beta D.No,as it is not possible to calculate standard deviation without a sample of returns E.Yes,the standard deviation is more than 29.33%
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