Question
Consider the following table of returns between the market and Forsythes Fancies (all values are %): Forsythes Fancies Returns Market Returns 1.2 1.0 2.1 1.0
Consider the following table of returns between the market and Forsythes Fancies (all values are %):
| Forsythes Fancies Returns | Market Returns |
| 1.2 | 1.0 |
| 2.1 | 1.0 |
| 0.6 | 1.0 |
| 2.6 | 1.0 |
a). What is the beta of Forsythe's fancies?
b). What is the variance and standard deviation of our beta?
c) Assume T-bills are currently 3% and market returns are 11%. What is the expected return of the firm?
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Finance For Non Financial Managers
Authors: Pierre Bergeron
6th Edition
0176501630, 9780176501631
