a. Compute the beta coefficients for Intel, Ford, Anheuser Busch and Merck. (8 marks) b. Assuming...

 

 

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a. Compute the beta coefficients for Intel, Ford, Anheuser Busch and Merck. (8 marks) b. Assuming a risk-free rate of 8 percent and an expected return for the market portfolio of 15 percent, compute the expected return for all the stocks. (4 marks) Question 3 a(intercept) Intel 0.22 TIM 12.10% 0.72 Ford 0.1 14.60% 0.33 Anheuser Busch 0.17 7.60% 0.55 Merck 0.05 10.20% 0.6 S&P 500 (the market portfolio) 0 5.50% 1 (Total 12 marks) a. Compute the beta coefficients for Intel, Ford, Anheuser Busch and Merck. (8 marks) b. Assuming a risk-free rate of 8 percent and an expected return for the market portfolio of 15 percent, compute the expected return for all the stocks. (4 marks) Question 3 a(intercept) Intel 0.22 TIM 12.10% 0.72 Ford 0.1 14.60% 0.33 Anheuser Busch 0.17 7.60% 0.55 Merck 0.05 10.20% 0.6 S&P 500 (the market portfolio) 0 5.50% 1 (Total 12 marks)

Answer rating: 100% (QA)

To calculate the beta coefficients for Intel Ford Anheuser Busch and Merck we will use the formula B... View the full answer