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a) Choose one of the three market indexes and briefly explain why you select that particular index. b) Compare the average return of your stock

a)  Choose one of the three market indexes and briefly explain why you select that particular index.

b) Compare the average return of your stock to the industry average return as well as the expected return predicted by the CAPM model and comment on the outcomes.

Average return1.850%
Variance0.001677508
Standard deviation0.040957392
Industry average return1.700%
Industry standard deviation0.053401379
Covariance with market0.000804452
beta1.096120312


Expected return based on CAPM0.905652053801554200%

Value-Weighted Return-incl. dividendsEqual-Weighted Return-incl. dividendsReturn on the S&P 500 Index




Average return1.14%0.92%1.09%
Variance0.0007480.0009320.000734
Standard deviation0.0273430.0305260.027091

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