An analyst predicts that the expected excess return on the market next year will be 4%. Assume

Question:

An analyst predicts that the expected excess return on the market next year will be 4%. Assume that the betas estimated here using data from 2004-2006 are suitable as estimates of next year's betas. Estimate the expected excess returns for the seven for next year.
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...