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A Stock Has a Standard Deviation of 25

question 30

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A stock has a standard deviation of 25.4 percent and a covariance with the market of .0160.The market has a standard deviation of 12.2 percent.What is the beta of this stock?


Definitions:

Discounted Payback Period

The time it takes for an investment to generate cash flows to recover its initial cost, accounting for the time value of money.

Cash Inflows

The total amount of money being transferred into a business, project, or financial product, typically measured within a specific period.

Rate Of Return

A financial return or setback experienced in an investment over a fixed period, denoted as a percentage of the original investment value.

Projects

Specific initiatives or plans undertaken by individuals or organizations aimed at achieving defined goals or objectives.

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