Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help. Will upvote. Average Variance St. dev. R(S&P 500) 4.8% 0.2% 3.9% R(DIS) 6.2% 0.6% 7.8% Rf 0.3% Regression results Intercept Beta St. Dev.

image text in transcribedimage text in transcribed

Please help. Will upvote.

Average Variance St. dev. R(S&P 500) 4.8% 0.2% 3.9% R(DIS) 6.2% 0.6% 7.8% Rf 0.3% Regression results Intercept Beta St. Dev. (ei) 1 0.0016 1.60 5.50% Performance Measures Sharpe ratio M 1.1538 0.7613 -1.53% R (CAPM Predicted) Jehnsen Alpha Treynor Index 7.50% - 1.300% 0.0369 0.0450 A B CAPM CAPM 12.5% 12.5% 10.0% 10.0% R(DIS) Actual R (DIS) CAPM Predicted 7.5% 7.5% Return Return R(DIS) CAPM Predicted 5.0% Market R(DIS) Actual 5.0% Market 2.5% 2.5% 0.0% 0.0 . 0.0% 0.0 05 1.0 1.5 2.0 2.5 0.5 10 1.5 2.0 2.5 Beta Beta D CAPM CAPM 12.5% 12.5% 10.0% 10.0% R(DIS) Actual R (DIS) CAPM Predicted RIDIS) Actual 7.5% 7.5% Return 5.0% Return Market (DIS) CAPM Predicted Market 5.0% 2.5% 2.5% 0.0% 0.0 0.0% 0.0 0.5 1.0 1.5 2.0 2.5 0.5 10 15 2.0 2.5 Beta Beta 29. Based on the tables and charts above, which chart represents depiction of DIS performance based on CAPM evaluation? A. A B. B C. C D D

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions