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You hear on the news that theS&P 500 was down 2.1 % today relative to therisk-free rate(the market's excess return was 2.1%). You are thinking
You hear on the news that theS&P 500 was down 2.1 % today relative to therisk-free rate(the market's excess return was 2.1%). You are thinking about your portfolio and your investments in Zynga and Proctor and Gamble.
a. IfZynga's beta is 1.2, what is your best guess as toZynga's excess returntoday?
b. If Proctor andGamble's beta is 0.6, what is your best guess as toP&G's excess returntoday?
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