You hear on the news that the S&P 500 was down 2% today relative to the risk-free
Question:
You hear on the news that the S&P 500 was down 2% today relative to the risk-free rate (the market’s excess return was -2%). You are thinking about your portfolio and your investments in Hewlett Packard and Procter & Gamble.
a. If Hewlett Packard’s beta is 1.4, what is your best guess as to Hewlett Packard’s excess return today?
b. If Procter & Gamble’s beta is 0.4, what is your best guess as to P&G’s excess return today?
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Albert Kihumba
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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