Below you have been provided the prices for Merck and the S& P 500 Index. a. Calculate

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Below you have been provided the prices for Merck and the S& P 500 Index.
Below you have been provided the prices for Merck and

a. Calculate the monthly holding- period returns for Merck and the S& P 500 Index.
b. What are the average monthly returns and standard deviations for each?
c. Graph the Merck returns against the S& P 500 Index returns.
d. Use a spreadsheet to compute the slope of the characteristic line.
e. Interpret your findings.

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Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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