Question
You hear on the news that the S&P 500 was down 2.5 % today relative to the risk-free rate (the market's excess return was negative
You hear on the news that the S&P 500 was down 2.5 % today relative to the risk-free rate (the market's excess return was negative 2.5 % right parenthesis . You are thinking about your portfolio and your investments in Hewlett Packard and P&G.
a. If Hewlett Packard's beta is 1.1 , what is your best guess as to Hewlett Packard's excess return today?
b. If P&G's beta is 0.4 , what is your best guess as to P&G's excess return today?
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Business Analysis And Valuation Using Financial Statements
Authors: Krishna G Palepu, Paul M Healy
4th Edition
032430286X, 9780324302868
