Given an expected market return of 12 per cent, with a standard deviation of 20 per cent, and the following data:

(a) Calculate the expected return for stock ABC using the single-index model.
(b) Calculate the variance for stock CDE using the single-index model.

Question

Given an expected market return of 12 per cent, with a standard deviation of 20 per cent, and the following data:
  
(a) Calculate the expected return for stock ABC using the single-index model.
(b) Calculate the variance for stock CDE using the single-index model.

Quizplus · Accepted Answer

The Answer of Given an expected market return of 12 per cent, with a standard deviation of 20 per cent, and the following data:
  
(a) Calculate the expected return for stock ABC using the single-index model.
(b) Calculate the variance for stock CDE using the single-index model.

Given an Expected Market Return of 12 Per Cent, with a Standard