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SCL Price SAN Price NZX50 Index Average Return 3.680147059 6.627941176 8203.669118 Standard Deviation 1.135566058 0.976465051 1824.60109 Suppose that you use the three average returns per
SCL Price SAN Price NZX50 Index Average Return 3.680147059 6.627941176 8203.669118 Standard Deviation 1.135566058 0.976465051 1824.60109 Suppose that you use the three average returns per annum calculated in Part (a) as the estimates of the expected returns for the two stocks and market portfolio, respectively. Suppose that the risk-free rate is 0.8% per annum. a) Plot a risk-return graph with beta on the x-axis and returns on the y-axis, which shows the Security Market Line, the market portfolio, and the actual returns of the two stocks. SCL Price SAN Price NZX50 Index Average Return 3.680147059 6.627941176 8203.669118 Standard Deviation 1.135566058 0.976465051 1824.60109 Suppose that you use the three average returns per annum calculated in Part (a) as the estimates of the expected returns for the two stocks and market portfolio, respectively. Suppose that the risk-free rate is 0.8% per annum. a) Plot a risk-return graph with beta on the x-axis and returns on the y-axis, which shows the Security Market Line, the market portfolio, and the actual returns of the two stocks
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