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4 i) Assume the Market (S&P Index) has a Beta of 1 and an average retum of 7%.ji Ford has a Beta of 0.8 and
4 i) Assume the Market (S&P Index) has a Beta of 1 and an average retum of 7%.ji Ford has a Beta of 0.8 and an actual retum of 6%. while Chrysler has a Beta of 9.5 and an actual return of 6.5 , which stock is the better buy? Please provide your explanation using the SML and show your calculations. ii) Describe what is Beta and explain what the Beta value range should be for: a) Market- b) High Risk companies c) Low Risk companies iii) How does Systematic Risk differ from Unsystematic Risk
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