A what is the covariance between hp and the market b what


Assume that the market has an expected return of 5.7% and volatility (risk or standard deviation) of 38%. Suppose the CAPM accurately describes the data you are using.IfHewlett-Packard (HP) has a 62.0% correlation with the market and a 25% volatility when the risk-free rate is 2.5%:

(a) What is the covariance between HP and the market?

(b) What is HP's beta?

(c) What is the expected return of HP?

(d) What percent of HP's total risk (variance) is idiosyncratic?

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Business Management: A what is the covariance between hp and the market b what
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