Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA= 3.0%+ 1.1RM + @A RB = -1.2 % + 1.2RM + eg OM= 29%; R-squareA= 0.29; R-squareg = 0.14 What is the covariance between each stock and the market index? (Calculate using numbers in decimal form, not percentages. Do not round your intermediate calculations. Round your answers to 3 decimal places.) Stock A Stock B Covariance 0.031 0.038

Q: where  is the excel sheet ,so i can see how you get  the answer.  I want to see the workings  please

A: Excel Workings are provided in the solution in the form of Excel snip. One can use the formula…

Q: how did u get that answer in the table? the present value? please solve

A: Here, First Cost is $8,914,223 Annual Operating Cost id 4281,740 Salvage Value at the end of 6 year…

Q: Use EMBG's adjusted trial balance to prepare EMBG's balance sheet for the current year-end. EMBG…

A: Definition: Balance sheet: To Know the financial position of the business balance sheet is prepared.…

Q: Q 2. Why We go for Ad-hoc Networking if we have a well-structured networking available? Explain

A: Connecting two computers does not always require a centrally managed network. Instead , users can…

Q: Can you explain the answer without excel please? Thanks.

A: Cost of Car is $52000 Interest rate is 6% Time period is 5 years Monthly Interest rate "rate" is…

Q: For the second question, were you able to show how that problem would be worked out?

A: The par value is stated in the corporate charter and the company cannot issue shares below the par…

Q: Hi - could you please send the CAPM model and explain what it is and when to use it please?  Thank…

A: Capital Asset Pricing Model (CAPM):It defines the relationship of an asset’s expected return with…

Q: Explain your understanding on FINTECH.

A: Fintech is a blend of two words – finance and technology. It refers to any technologies that enable…

Q: Required: a. Prepare a statement of LLC liquidation. b. Provide the journal entry for the final cash…

A: Given Information: Lester Capital = $48,630 Torres Capital = $65,630 Hearst Capital = $26,190…

Q: Use EMBG's adjusted trial balance to prepare the company's income statement. EMBG CORPORATION…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Support your computations with relevant explanations.

A: Certainly! Here's a brief explanation of why certain items were included or excluded when…

Q: I need step by step on how you came up with the answers.

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: Is there a way to set this up in Excel, please?

A: Face Value  $       1,000.00 Time Period (Years) 10 Price of Bond  $         311.05

Q: How would I complete this problem fully by hand?

A: Data given: Loan amount is $15,000 Nominal interest rate is 11% n= 1 year

Q: 3. What are the major components of The Sarbanes-Oxley Act?

A: Sarbanes Oxley Act is Act establishment by United States in order to protect the interest of the…

Q: pos.

A: This statement is also known as Statement of Profit and Loss or Profit and Loss Account. Income…

Q: Kindly answer #10 show complete solution will surely given an upvote thank you

A:

Q: hi, can I get the solution or the computation?, thank you!

A: Journal entries (JF) refers to the very basic step in the accounting cycle and records the daily…

Q: I could use some help with this

A: Retirement planning is an important process for an individual because the individual is earning at…

Q: Explain key features of DLT & mention its potential benefits.?

A: As the name suggests, Distributed Ledger is a database that is spread over multiple locations. These…

Q: Could you explain without using the excel?

A: The face value of the bond is $1,000. The coupon rate is 2%. The period is 6 years. The interest…

Q: Hi, can you help me with this, is hard to understand. Thank you.

A: 1. Allowance for doubtful debt - Allowance for doubtful debt is the account that a company creates…

Q: In the knowledge based system a heuristic system? Explain your answer

A: Heuristic approach:   Heuristic approach refers to a problem-solving approach that considers…

Q: Using CVP analysis answer from d to g

A: Hi student Since you have asked for multiple subparts, we will answer only three subparts. If you…

Q: can you solve letters i and j manually with formulas? thank you!

A:

Q: The following errors were found in the books of Rosco Consulting during the month: 1. Consultancy…

A: Rectification entries are those that correct the errors made in the recorded entries, without…

Q: can you solve this manually with formulas? thank you!

A: Note. question involves multiple sub parts. According to bartleby guidelines , if question involves…

Q: Explain CVP APPLICATIONS WITH EXAMPLE?

A: The CVP analysis is used to determine what will happen to the financial results when they are…

Q: On 1 January 2019, a company which prepares financial statements to 31 December each year, enters…

A: The right-of-use asset is a lessee's right to use an asset over the life of a lease. It is recorded…

Q: Kindly answer #7 -10 will surely given an upvote show complete solution.

A: Liabilities refers to the obligations which the business need to pay and it states current…

Q: relevance characterisitic

A: Relevance is an important characteristic of accounting or financial information.

Q: Can another formula be used to get the answers?

A: Formula  for calculation of share price=Dividend last year*(1+ Growth rate)(Required rate of return-…

Q: How do I find u. I am having a hard time with finding it. Can you show me how to do that. I…

A: We have to explain how to find "u".

Q: Explain MBBs and MPTs?

A: Mortgage-backed security: A mortgage-backed security is a kind of asset-backed security which is…

Q: I need help understanding step by step how to slove this

A: Introduction: Direct material: Direct material refers to the material used by the company in…

Q: Could someone please explain the DCF model

A: Introduction : Discounted cash flows (also known as discounted cash flows): As discounted cash…

Q: Explain the benefits of JIT.

A: Just-in-time manufacturing system: Just-in-time (JIT) manufacturing system is an approach to…

Q: Can you also use a TVM calculator?

A: Solution:- When an equal amount is saved each period at end of period, it is called ordinary…

Q: I need help with figuring out the solution, thank you.

A: The debtors issues an instrument instead of cash said to be note receivable. In case note is paid…

Q: Can you solve using excel and explain the formulas more in depth?

A: Here,Market Cap is 300 billion pesoNext Year FCF is 9.6 billion pesoGrowth Rate is 8.60%

Q: can you show formulas used to solve this problem?

A: The concept of the time value of money determines that the worth of money gets depreciated over a…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.