FGGURE 12.11 Monthly rotes of return for (d) Marathon Oit, (b) Intel, and (c) Walmart, plus the market pertifotio. Eigure 12.11 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 diversiffed investor? b. Which stock is safest for an undiversifled 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 portfollo'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%. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Consider a portfolio with equal investments in each stock. What would this portfolio's beta have been? Note: Do not round intermediate calculations. Round your answer to 2 decimal places: Elgure 12.11 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 undiversiffed investor who puts all her funds in one of these stocks? c. Consider a portfollo 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 premlum of 8%. The risk-free rate of interest is 4%. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Consider a well-diversiffed portfollio made up of stocks twith the same beta as Intel. What are the beta and standard deviation of this portfolio's return? The standard deviation of the market portfollo's return is 20%. Note: Do not round intermediate calculations. Round your beta answer to 2 decimal places. Enter your standard deviation answer as a percent rounded to 1 decimal place. Elgure 12.11 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 diversifled 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 portfollo'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%. Answer is complete but not entirely correct. 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 pricing model with a market risk premlum of 8%. The risk-free rate of interest is 4%. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places
