What are the standard deviations of stocks


Stock Expected Return Beta Firm Specific Standard Deviation

Acme 13% 0.8 30%
Bundu 18% 1.2 40%

The market index has a standard deviation of 22% and the risk free rate is 8%

(a) What are the standard deviations of stocks of Acme and Bundu.

Solution Preview :

Prepared by a verified Expert
Finance Basics: What are the standard deviations of stocks
Reference No:- TGS0670903

Now Priced at $5 (50% Discount)

Recommended (91%)

Rated (4.3/5)