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You hear on the news that the S&P 500 was down 1.1% today relative to the risk-free rate (the market's excess return was 1.1%). You
You hear on the news that the S&P 500 was down 1.1% today relative to the risk-free rate (the market's excess return was 1.1%). You are thinking about your portfolio and your investments in Zynga and P & Gamble.
a. If Zynga's beta is 1.3, what is your best guess as to Zynga's excess return today?
b. If P &Gamble's beta is 0.4, what is your best guess as to P&G's excess return today?
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