Question
You are the financial advisor of Mr. Bean and he asks from you to answer the following questions based on the given table. (a)Estimate betas
You are the financial advisor of Mr. Bean and he asks from you to answer the following questions based on the given table.
(a)Estimate betas of stock A and stock B.
(b)Mr. Bean would like to own a portfolio consisting of stock A, stock B, and$2000 in Treasury Bills. Estimate the beta of this portfolio.
(c)Draw the Security Market line
| Stock | # of shares | Price per share | return |
| Stock a | 100 | $20 | 5% |
| Stock b | 200 | $10 | 10% |
| Treasury bill | - | - | 3% |
| market | - | - | 17% |
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Aircraft Finance Strategies For Managing Capital Costs In A Turbulent Industry
Authors: Bijan Vasigh, Reza Taleghani, Darryl Jenkins
1st Edition
1604270713, 9781604270716
