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Consider the following predictions by an analyst on Stock A and S&P 500 (a market portfolio). Compute the beta coefficient for Stock A. State of
Consider the following predictions by an analyst on Stock A and S&P 500 (a market portfolio). Compute the beta coefficient for Stock A.
| State of Economy | Probability of State of Economy | Return if State Occurs | |
| Stock A | Stock B | ||
| Boom | 25% | 32% | 16% |
| Normal | 30% | 16% | 6% |
| Below Average | 20% | 3 | 2% |
| Recession | 25% | -16% | -10% |
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Financial Analysts Indispensable Pocket Guide
Authors: Ram Ramesh
1st Edition
0071361561, 978-0071361569
