Question
You hear on the news that the S&P 500 was down 1.2% today relative to the risk-free rate (the market's excess return was 1.2%). You
You hear on the news that the S&P 500 was down 1.2% today relative to the risk-free rate (the market's excess return was 1.2%). You are thinking about your portfolio and your investments in Hewlett Packard and Proctor and Gamble.
a.If Hewlett Packard's beta is 1.3, what is your best guess as to Hewlett Packard's excess return today?
b. If Proctor and Gamble's beta is 0.4, what is your best guess as to P&G's excess return today?
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker
3rd Edition
076377894X, 978-0763778941
