Stock Z Has a Standard Deviation of 18 Percent and a Covariance

question 78

Multiple Choice

Stock Z has a standard deviation of 18 percent and a covariance with the market of 0.0625.The expected return of the market is 13 percent with a standard deviation of 20 percent.The risk-free rate is 5 percent.What is the required return of Stock Z?

• A) 7.50%
• B) 7.78%
• C) 17.50%
• D) 20.43%

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Definitions:

Business Processes

Procedures or sets of activities that are performed in an organization to provide products or services to customers or to manage internal functions.

Customer Satisfaction

A measure of how products or services meet or surpass customer expectations, crucial for maintaining customer loyalty and driving business success.

BPI

A systematic method, Business Process Improvement aims to optimize the basic processes of an organization, leading to enhanced efficiency.

Analysis Phase

A stage in the development process where the needs or conditions to meet for a new or altered product or project are determined.