Suppose that you were given the following data for past excess quarterly returns for Markese Imports, Inc.,
Question:
On the basis of this information, graph the relationship between the two sets of excess returns and draw a characteristic line. What is the approximate beta7What can you say about the systematic risk of the stock, based on past experience?
Transcribed Image Text:
EXCESS EXCESS RETURNS MARKET PORTFOLIO 0.05 0.10 0.06 0.10 0.02 0.03 0.07 0.01 0.08 0.00 0.13 0.04 0.01 0.09 0.14 0.04 0.15 0.06 0.11 0.05 0.03 0.01 0.03 0.04 QUART RETURNS ER MARKESE 0.04 0.05 0.04 0.05 0.02 0.00 0.02 0.01 0.02 0.04 0.07 0.01 0.01 0.06 0.06 0.02 0.07 0.02 0.04 0.03 0.01 0.01 0.01 0.02 10 12 13 14 15 16 17 18 19 20 21 24
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Related Book For
Fundamentals Of Financial Management
ISBN: 9780273713630
13th Revised Edition
Authors: James Van Horne, John Wachowicz
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