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Given the following returns: Year     Stock X     Market ind…

Posted byAnonymous January 7, 2025

Questions

Given the fоllоwing returns: Yeаr     Stоck X     Mаrket index    1         -0.36           -0.29    2         -0.25             0.41    3         -0.14             0.09   а. Calculate the beta of stock X. [Note: Do not type your answer in Canvas] [8 points] b. Calculate the alpha of stock X. [Note: Do not type your answer in Canvas] [4 points] c. Calculate the error terms of stock X. [Note: Do not type your answer in Canvas] [9 points] d. Calculate the systematic risk of stock X. [Note: Do not type your answer in Canvas] [3 points] e. Calculate the unsystematic risk of stock X. [Note: Do not type your answer in Canvas] [4 points] f. Is stock X a good stock to consider for inclusion in a portfolio? Explain.  [Note: Do not type your answer in Canvas] [8 points] g. Write out the var-cov matrix of stock X and market index.  [Note: Do not type your answer in Canvas] [4 points]

Tags: Accounting, Basic, qmb,

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