APS TOPIC 2 Flashcards
1
Q
Correlation between stocks return and market portfolio
A
covariance / total SD x SD market return
2
Q
Covariance
A
(SD)^2 x Beta
3
Q
Beta
A
risk premium / market risk premium
Correlation between stocks return and market portfolio
covariance / total SD x SD market return
Covariance
(SD)^2 x Beta
Beta
risk premium / market risk premium