Question
You hear on the news that the S&P 500 was down 1.6% today relative to the risk-free rate (the market's excess return was 1.6%). You
You hear on the news that the S&P 500 was down 1.6% today relative to the risk-free rate (the market's excess return was 1.6%). You are thinking about your portfolio and your investments in Hewlett Packard and P&G.
a. If Hewlett Packard's beta is 1.4, 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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Financial Markets And Institutions
Authors: Jeff Madura
9th Edition
1439038848, 978-1439038840
