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Recall that beta in the CAPM model has the natural relation between linear regression. The table below shows monthly excess returns on Apple stock, ICE
Recall that beta in the CAPM model has the natural relation between linear regression. The table below shows monthly excess returns on Apple stock, ICE Boa U.S. Investment Grade Bond Index and the S\&P 500 Index. 1. Using the S&P500 index as the market index, estimate market betas of Apple stock and the bond index. (1pt) 2. An investor would like to hold a portfolio made up of Apple stock and bond index. She would like a portfolio beta of 0 . What are the portfolio weights of Apple stock and the bond index? (1pt) Recall that beta in the CAPM model has the natural relation between linear regression. The table below shows monthly excess returns on Apple stock, ICE Boa U.S. Investment Grade Bond Index and the S\&P 500 Index. 1. Using the S&P500 index as the market index, estimate market betas of Apple stock and the bond index. (1pt) 2. An investor would like to hold a portfolio made up of Apple stock and bond index. She would like a portfolio beta of 0 . What are the portfolio weights of Apple stock and the bond index? (1pt)
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