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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 Repo Men undervalued?

Yes

No

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