Use this information for the following three questions A colleague has estimated the index model, us


Use this information for the following three questions A colleague has estimated the index model, using excess returns, for t
The correlation between the returns on Cincinatti Ltd and Columbus Ltd is: Select one: a. 0.337 ob. 0.653 c. 0.054 d. 0.146 e Use this information for the following three questions A colleague has estimated the index model, using excess returns, for two companies; Cincinatti Ltd and Columbus Ltd. The Beta of Cincinatti Ltd is 1.05, and the standard deviation of its excess returns is 32.2%. The Beta of Columbus Ltd is 0.75, and the standard deviation of its excess returns is 25.1%. The material provided also indicates that Cincinatti Ltd's firm-specific standard deviation is 25.60%. The standard deviation of the market is: Select one: a. 28.65% b. 14.33% c. 16.50% d. 32.98% e. 18.60% What is the firm-specific standard deviation of Columbus Ltd? Select one: a. 13.95% b. 18.83% c. 12.89% d. 3.50% e. 20.87% The correlation between the returns on Cincinatti Ltd and Columbus Ltd is: Select one: a. 0.337 ob. 0.653 c. 0.054 d. 0.146 e. 0.027

 
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