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Rate of Return Aggressive Defensive Scenario Market Stock A Stock D Bust Boom -8% -13% -6% 26 35 19 Required A Required B F

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Rate of Return Aggressive Defensive Scenario Market Stock A Stock D Bust Boom -8% -13% -6% 26 35 19 Required A Required B F Find the beta of each stock. (R Stock A Stock D Beta Required A Required B Required If each scenario is equally likely, find answers as a whole percent.) Expected Rate of Return Market portfolio % Stock A % Stock D % Required A Required B Required C Requ If the T-bill rate is 5%, what does the CAPM say intermediate calculations. Enter your answers as Stock A Stock D Expected Rate of Return % % < Rec Required A Required B Required C Required D Which stock seems to be a better buy on the basis of your ans Better buy < Required C

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