The monthly rates of return of TCC are given below. Using the EXCEL slope function, calculate the

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The monthly rates of return of TCC are given below.
Using the EXCEL slope function, calculate the beta of TCC.
If the risk-free rate currently is 5% and market risk premium is 7%, what is expected return now on TCC stock? What is the expected return on a portfolio that replicates the market?
Market return % TCC return % Month January +1 February -1 March -1 -2.5 April -1 -0.5 +2 May +1 June +1 +1 July +2 +4 Au
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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