You hear on the news that the S&P 500 was down 2% today relative to the risk-free

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You hear on the news that the S&P 500 was down 2% today relative to the risk-free rate (the market’s excess return was –2%). You are thinking about your portfolio and your investments in Zynga and Procter & Gamble.

a. If Zynga’s beta is 1.4, what is your best guess as to Zynga’s excess return today?

b. If Procter & Gamble’s beta is 0.5, what is your best guess as to P&G’s excess return today?

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Corporate Finance

ISBN: 9780273792024

3rd Global Edition

Authors: Peter Demarzo, Jonathan Berk

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Question Posted: Jun 12, 2024 01:02 AM

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You hear on the news that the S&P 500 was down 2% today relative to the risk-free

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Corporate Finance

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