Given the following returns: Year Stock X Market i…
Given the following returns: Year Stock X Market index 1 -0.36 -0.29 2 -0.25 0.41 3 -0.14 0.09 a. Calculate the beta of stock X. b. Calculate the alpha of stock X. c. Calculate the error terms of stock X. d. Calculate the systematic risk of stock X. e. Calculate the unsystematic risk of stock X. f. Is stock X a good stock to consider for inclusion in a portfolio? Explain. g. Write out the var-cov matrix of stock X and market index.