Problem 4 Given the following information: Year 1 2 3 4 5 6 7 8 9...

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Problem 4 Given the following information: Year 1 2 3 4 5 6 7 8 9 10 Market 30% 7% 18% -22% -14% 10% 26% -10% -3% 38% Blandy 26% 15% -14% -15% 2% -18% 42% 30% -32% 28% Gourmange 47% -54% 15% 7% -28% 40% 17% -23% -4% 75% 1. Estimate the betas for Blandy and Gourmange companies? 2. If you have a portfolio of 25% Blandy and 75% Gourmange, what is the beta for your portfolio? Problem 4 Given the following information: Year 1 2 3 4 5 6 7 8 9 10 Market 30% 7% 18% -22% -14% 10% 26% -10% -3% 38% Blandy 26% 15% -14% -15% 2% -18% 42% 30% -32% 28% Gourmange 47% -54% 15% 7% -28% 40% 17% -23% -4% 75% 1. Estimate the betas for Blandy and Gourmange companies? 2. If you have a portfolio of 25% Blandy and 75% Gourmange, what is the beta for your portfolio?

Answer rating: 100% (QA)

To estimate the betas for Blandy and Gourmange companies we can use the following formula beta fracC... View the full answer