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Using the beta from the previous problem, and Rf = 6 % , a Rmkt = 1 8 % compute Ks . Given D 0
Using the beta from the previous problem, and Rf a Rmkt compute Ks Given D $; D; D; D; D; D and then g Find P
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tabletableState ofthe worldProbability,tableSecurityReturns XtableSecurityReturnsMarketBoomNormalRecession
Is this distribution symmetrical? Calculate the covariance. Calculate the variance of the portfolio made up of and of the Market. Find the Beta for the firm. Find the correlation coefficient.
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