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1 - 12.20% -26.50% -47.30% 2 11.40 29.00 19.10 3 16.20 36.20 187.80 4 15.50 6.60 -1.30 5 .70 4.70 105.80 6 -9.00 -11.60 32.40
1 | - 12.20% | -26.50% | -47.30% | ||||||
2 | 11.40 | 29.00 | 19.10 | ||||||
3 | 16.20 | 36.20 | 187.80 | ||||||
4 | 15.50 | 6.60 | -1.30 | ||||||
5 | .70 | 4.70 | 105.80 | ||||||
6 | -9.00 | -11.60 | 32.40 | ||||||
7 | -18.60 | -30.00 | -53.50 | ||||||
8 | - 3.10 | 42.50 | 86.40 | ||||||
9 | -2.40 | 26.30 | -8.50 | ||||||
10 | -4.10 | -13.00 | 8.00 | ||||||
Determine: a) the beta coefficient and the coefficient of determination for the market with the Target company and for the market with American Eagle and interpret the result of the computations. b) What is Target's risk level? What is the risk level of AE? c) Would it be worth creating a 30/70 portfolio with Traget and AE? Explain according to the findings obtained for the coefficient beta and the coefficient of determination.
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