The historic returns of Mastertoy stock and S amp; P and shown below. Based on t

Question

The historic returns of Mastertoy stock and S amp; P and shown below. Based on this information, would you expect the Beta of Mastertoy (relative to S amp; P 500 to be: beta 0 cannot be determined Based on the S amp; P 500 returns shown in problem 46, what is the closest geometric return and standard deviation of the S amp; P 500 between 2010 and 2013? 3.9% and 13.5% -1.9% and 4.3% -1.9% and 13.5% 3.9% and 4.3% Based on the Mastertoy returns shown in problem 16, what is its Sharpe ratio between 2010 and 2013 if the risk free rate over this period returned 2% per year? Sharpe ration > 2.0 1.0

Explanation / Answer

16. The return of the stock moves against the market rate of return, hence the stock is more risky.

Ans. C) Beta > 0

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.