Eigure 1211 shows plots of monthly rates of return on three stocks versus the stock market index. The beta and standard deviation of each stock is given beside its plot. Required: a. Which stock is safest for a diversified investor? b. Which stock is safest for an undiversified investor who puts all her funds in one of these stocks? c. Consider a portfolio with equal investments in each stock. What would this portfolio's beta have been? d. Consider a well-diversified portfolio made up of stocks with the same beta as intel. What are the beta and standard deviation of this portfolio's return? The standard deviation of the market portfolio's return is 20%. e. What is the expected rate of return on each stock? Use the capital asset pricing model with a market-risk premium of 8%. The risk-free rate of interest is 4%. Complete this question by entering your answers in the tabs below. a. Which stock is safest for a diversified investor? b. Which stock is safest for an undiversified investor who puts all her funds in one of these stocks? Eigure 1211 shows plots of monthly rates of return on three stocks versus the stock market index. The beta and standard deviation of each stock is given beside its plot. Required: a. Which stock is safest for a diversified investor? b. Which stock is safest for an undiversified investor who puts all her funds in one of these stocks? c. Consider a portfolio with equal investments in each stock. What would this portfolio's beta have been? d. Consider a well-diversified portfolio made up of stocks with the same beta as Intel. What are the beta and standard deviation of this portfolio's return? The standard deviation of the market portfolio's return is 20%. e. What is the expected rate of return on each stock? Use the capital asset pricing model with a market risk premium of 8%. The risk-free rate of interest is 4%. Complete this question by entering your answers in the tabs below. Consider a portfolio with equal investments in each stock. What would this portfollo's beta have been? Note: Do not round intermediate calculations. Round your anower to 2 decinal places. Figure 1211 shows plots of monthly rates of return on three stocks versus the stock market index. The beta and standard deviation of each stock is given beside its plot. Required: a. Which stock is safest for a diversified investor? b. Which stock is safest for an undiversified investor who puts all her funds in one of these stocks? c. Consider a portfolio with equal investments in each stock. What would this portfolio's beta have been? d. Consider a well-diversified portfolio made up of stocks with the same beta as intel. What are the beta and standard deviation of this portfolio's retum? The standard deviation of the market portfolio's return is 20%. e. What is the expected rate of return on each stock? Use the capital asset pricing model with a market risk premium of 8% The risk-free rate of interest is 4%. Complete this question by entering your answers in the tabs below. Consider a well-diversified portfolio made up of stocks with the same bota as intel. What are the beta and standard deviation of this portfollo's return? The standard devlation of the market portfolog return is 20%. Note: Do not round intermediate calculations. Round your beta answer to 2 decimal places. Enter your atandard deviatian answer as a percent rounded to 1 decimal place. Eigure 1211 shows plots of monthly rates of return on three stocks versus the stock market index. The beta and standard deviation of each stock is given beside its plot. Required: a. Which stock is safest for a diversified investor? b. Which stock is safest for an undiversified investor who puts all her funds in one of these stocks? c. Consider a portfolio with equal investments in each stock. What would this portfolio's beta have been? d. Consider a well-diversified portfolio made up of stocks with the same beta as intel. What are the beta and standard deviation of this portfolio's return? The standard deviation of the market portfolio's return is 20%. e. What is the expected rate of return on each stock? Use the capital asset pricing model with a market risk premium of 8%. The risk-free rate of interest is 4%. Complete this question by entering your answers in the tabs below. What is the expected rate of return on each stock? Use the capital asset priding model with a market risk premium of 8%. The risk free rate of interest is 4%. Note: Do not round intermediate calculations. Enter your answers as a percent roundod to 2 decinal places. FIGURE 12.11 Monthly rates of roturn for (o) Marathon Oil, (b) Intol, and (c) Walmart, plus the market portfolio. FIGURE 12.11 (conitnued)
