Question
Problem 1 Use the following observed percentage returns on stock Y and the market portfolio M to answer the question below: Table 1 Observed Returns
Problem 1
Use the following observed percentage returns on stock Y and the market portfolio M to answer the question below:
Table 1
|
| Observed Returns (%) | |
| Year | Y | M |
| 2012 | 30.6 | 0.0 |
| 2013 | 26.6 | 12.6 |
| 2014 | 10.4 | 25.9 |
| 2015 | 84.8 | 10.8 |
| 2016 | (109.0) | (0.7) |
| 2017 | 37.0 | 9.1 |
| 2018 | 137.9 | 17.7 |
| 2019 | 18.3 | 15.3 |
| 2020 | 38.2 | 23.4 |
| 2021 | (10.2) | 34.7 |
Given that M is the market index, compute the beta for stock Y.
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The 3 Signal The Investing Technique That Will Change Your Life
Authors: Jason Kelly
1st Edition
0142180955, 978-0142180952
