Yucalium 11 policy You estimate a CAPM regression for AAPL on SP500: Ret(AAPL) = 1% + 1.3 Ret(SPY) + eps. Volatilityeps) = 20%. R2=15%. rf = 1%. ExpRet(SPY) - rf = 5% How much risk can be eliminated by hedging AAPL with SPY? I.e., what fraction of unhedged AAPL can be hedged? Pick the closest number. 15% 20% 50% 85% Question 10 (1 point) You estimate a CAPM regression for AAPL on SP500: Ret(AAPL) = 1% + 1.3 Ret(SPY) + eps. Volatilityeps) = 20%. R2=15%. rf = 1%. ExpRet(SPY) - rf = 5% Assume past extrapolates to the future, you buy Apple and hedge it by selling e-mini S&P futures. After the portfolio is properly hedged, its expected return is ...? Pick closest number. 00% o o Yucalium 11 policy You estimate a CAPM regression for AAPL on SP500: Ret(AAPL) = 1% + 1.3 Ret(SPY) + eps. Volatilityeps) = 20%. R2=15%. rf = 1%. ExpRet(SPY) - rf = 5% How much risk can be eliminated by hedging AAPL with SPY? I.e., what fraction of unhedged AAPL can be hedged? Pick the closest number. 15% 20% 50% 85% Question 10 (1 point) You estimate a CAPM regression for AAPL on SP500: Ret(AAPL) = 1% + 1.3 Ret(SPY) + eps. Volatilityeps) = 20%. R2=15%. rf = 1%. ExpRet(SPY) - rf = 5% Assume past extrapolates to the future, you buy Apple and hedge it by selling e-mini S&P futures. After the portfolio is properly hedged, its expected return is ...? Pick closest number. 00% o o