1. You hear on the news that the S&P500 was down 2% today relative to the risk-free rate (the markets excess return was -2% today). You are thinking about your portfolio that is made up of HP and P&G

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

b. If P&Gs beta is 0.4, what is your best guess as to P&Gs excess return today?

c. If your portfolio contains 60% of HP and the rest in P&G, what is your best guess as to your portfolios excess return today?