Emails us- support@assignmnetanswers.com. Call US

Assignment help 3683

Hello, I have a question regarding an assignment question at NUS from the module FIN3102B. All information is included in the question. The main problem is with the a) question. I don’t know how to calculate the return of the market while not having beta of the stocks.

1.     Suppose that the market consists of two stocks A and B. In the market there are 100 shares of A and 100 shares of B traded. The price of A is currently $1 per share, and the price of B is $2. Let the risk free rate be 2%.

a.     If the expected returns of stock A is 10%, and B is 6%, what is the expected return of the market?

b.    Assuming CAPM holds, what is the beta of stock A and the beta of stock B?

c.     Assuming a standard deviation of the market of 20%, what is the covariance between stock A and the market?

Solution:

15% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.