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PLEASE ANSWER ALL QUESTIONS Based on five years of monthly data, you derive the following information for the companies listed: a. Compute the beta coefficient
PLEASE ANSWER ALL QUESTIONS
Based on five years of monthly data, you derive the following information for the companies listed: a. Compute the beta coefficient for each stock, Do not round intermediate calculations. Round your answers to three decimal places. Intel: Ford: Anheuser Busch: Merck: b. Assuming a risk-tree rate of 7 percent and an expected return for the market portfolio of 13 percent, compute the expected (required) retum for all the stocks. Do ant round intermediate calculations. Round your answers to two decimal places. Intel: Ford: o Anheuser Busch: % Merck: % c. Choose the correct SML graph for the following estimated returns for the next year. - Intel 20 percent - Ford - 13 percent - Anheuser Busch - 17 percent - Merck - 8 percent The correct groph is B. Security market Line C. Securlty market Line D. Security market Line Which stocks are undervalued or overvalued Step by Step Solution
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