You hear on the news that the S&P 500 was down 2.8% today relative to the risk-free rate (the market's excess return
Posted: Thu May 19, 2022 6:56 am
You hear on the news that the S&P 500 was down 2.8%
today relative to the risk-free rate (the market's
excess return was −2.8%). You are thinking about your portfolio and
your investments in Zynga and Proc and Gamble.
a.If Zynga's beta is 1.4, what is your best guess as
to Zynga's excess return today?
b. If Proc and Gamble's beta is 0.5, what is your
best guess as to P&G's excess return today?
today relative to the risk-free rate (the market's
excess return was −2.8%). You are thinking about your portfolio and
your investments in Zynga and Proc and Gamble.
a.If Zynga's beta is 1.4, what is your best guess as
to Zynga's excess return today?
b. If Proc and Gamble's beta is 0.5, what is your
best guess as to P&G's excess return today?