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The estimated rates of return and the beta coefficients of the alternatives as supplied by Barney Smiths computer program are as follows: Security Estimated Return
The estimated rates of return and the beta coefficients of the alternatives as supplied by Barney Smiths computer program are as follows:
Security Estimated Return Risk (Beta)
Alta Inds 17.4% 1.29
Market 15.0 1.00
Am. Foam 13.8 0.68
T-Bills 8.0 0.00
Repo Men 1.7 (0.86)
Is Alta Inds undervalued ?
Yes
No
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