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Paladinen [302]
4 years ago
15

To estimate a stock's beta from historical data, we should regress the (excess) return of the stock on the (excess) return of __

___.
Business
1 answer:
eimsori [14]4 years ago
6 0

Answer: c. the market portfolio

Explanation:

A stock's beta measures how the stock moves in relation to the general movement of the market. It is therefore possible to estimate it based on the returns of both the market and the historical return of the stock.

To do so, one can run a regression analysis of the excess return of the stock on the excess return of the market portfolio. This will allow for knowing the amount of risk that is from the market and the one from the stock itself thereby allowing for the calculation of the stock's beta.

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Assume that you have entered into a swap agreement for a notional of 100M USD under which every 6 months you agree to pay LIBOR
hodyreva [135]

Answer:

C) 0.5 USD

Explanation:

Swap is an arrangement in which two parties exchange their interest rates for mutual benefit. One party may receive fixed rate and other will receive floating rate based on LIBOR. In the given scenario the swap agreement was originated when the LIBIOR was 3%. The fixed rate was set to be at 4% so the net gain at the time of inception was 1%. When LIBOR increased after six month the net gain declined to only 0.5%.

4 0
3 years ago
Which of the following refers to the strategic process of distributing, promoting, and pricing products, and discovering the des
asambeis [7]

Answer:

Option A Electronic Marketing

Explanation:

The electronic media is a means of very strong bond between a customer and its users nowadays. The reason is that the cost of connecting with customers is very low and the customer nowadays orders goods online, pays online at the spot and get delivered on time. The supplier also promotes its products online and uses different pricing strategies to increase its monthly profits. So the right option is Electronic marketing which includes digital marketing and digital media.

6 0
4 years ago
What does the interaction of the producer and the consumer establish?
Alexxandr [17]
They both establish a market price. It is the price that the consumers pay to willing producers. It is defined by the law of supply and demand. The higher the consumer demand the higher the price set by the producers. 

Usually, the market price is at the Equilibrium Market Price made with the interaction of the supply and demand. 
6 0
3 years ago
Which of the following statements is correct? ACars typically lose the most value in the first year after purchase. BHouses will
VashaNatasha [74]

I believe the answer is: A. Cars typically lose the most value in the first year after purchase

As the miles usage in cars increase, the quality of the machine tend to deteriorate, which would lead to the decrease in the cars' value. On top of that, the new model that given by car companies tend to possess better technology/design. On average, cars tend to lose 15 - 25 % in value during the first year.

7 0
3 years ago
Read 2 more answers
As a manager of the NHQ project, you are performing quantitative risk analysis. You have discovered that one project risk has a
cestrela7 [59]

Answer:

$26,800

Explanation:

Data given in the question

Probability of the risk = 40%

Cost of the project = $67,000

So by considering the above information

The expected monetary value of the risk event is

= Probability of the risk × cost of the project

= 40% × $67,000

= $26,800

By multiplying the probability with the cost of the project, the expected monetary value could come

5 0
4 years ago
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