Given the Following Information

question 70

Essay

Given the following information:

a) What are the average monthly returns on Stock X and the S&P TSX?
b) What are the standard deviations of the monthly returns on Stock X and the S&P TSX?
c) What is the covariance of the returns on Stock X and the S&P TSX?
d) What is the beta of Stock X?
e) What is the implied risk-free rate?

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Definitions:

Competent Witness

An individual deemed legally qualified to testify in a court of law because they possess direct knowledge of the facts or matter in question.

Expert Witness

A person with specialized knowledge, skills, or experience in a particular field who is hired to testify in court to help understand complex subjects.

Credible

Deserving of trust or belief; reliable and believable.

Summarizing

The process of briefly restating the main points of a piece of writing, speech, or argument.