Question
You hear on the news that the S&P 500 was down 1.4% today relative to the risk-free rate (the market's excess return was 1.4%). You
You hear on the news that the S&P 500 was down 1.4% today relative to the risk-free rate (the market's excess return was 1.4%). You are thinking about your portfolio and your investments in Hewlett Packard and Ben and Gamble.
a. If Hewlett Packard's beta is 1.1, what is your best guess as to Hewlett Packard's excess return today?
b. If Ben and Gamble's beta is 0.6, what is your best guess as to P&G's excess return today?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
7th Edition
1473778913, 978-1473778917
