Author Question: CISCO System's stock has a correlation with the market of 0.65. CISCO's standard deviation of ... (Read 851 times)

Diane · **on:** Jul 10, 2018

CISCO System's stock has a correlation with the market of 0.65. CISCO's standard deviation of returns is 45 and standard deviation of the market is 20. What is CISCO System's beta?

A) 0.29
B) 0.85
C) 1.19
D) 1.46
E) 1.76

Question 2

Which of the following statements is TRUE?

A) By DECREASING the number of payments per year, you REDUCE your total cash outflow but INCREASE your effective borrowing rate.
B) By INCREASING the number of payments per year, you BOOST your total cash outflow but INCREASE your effective borrowing rate.
C) By INCREASING the number of payments per year, you REDUCE your total cash outflow but INCREASE your effective borrowing rate.
D) By INCREASING the number of payments per year, you REDUCE your total cash outflow but DECREASE your effective borrowing rate.

joanwhite · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

D

Answer to Question 2

Answer: C
Explanation: C) All other answers besides C have at least one word that disagrees with the correct words found in C.