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From Yahoo!Finance obtain a report on any two companies . What are the betas listed for these companies? If you made an equal dollar investment
From Yahoo!Finance obtain a report on any two companies.
- What are the betas listed for these companies?
- If you made an equal dollar investment in each stocks what would be the beta of your portfolio?
- 3. Apply the Capital Asset Pricing Model (CAPM) Security Market Line to estimate the required return on these two stocks.
Assumptions and Data: Note that you will need an estimate of the risk-free rate, rRF, the market risk premium. Assume a 5% market risk premium and get the current yield on 10-year Treasury securities from Finance!Yahoo
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