In the January 25,1991 , issue of The Value Line Investment Survey, you note the following: a.

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In the January 25,1991 , issue of The Value Line Investment Survey, you note the following:

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a. How do you interpret these betas?

b. Is it reasonable to assume that the expected return on British Telecom is less than that on IBM shares?

c. "Given that Cigna Corporation has a $\beta$ of 1.00 , one can mimic the performance of the stock market as a whole by buying only these shares." Do you agree with this statement?

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Foundations Of Financial Markets And Institutions

ISBN: 9780136135319

4th Edition

Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones

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In the January 25,1991 , issue of The Value Line Investment Survey, you note the following: a.

Question:

Company IBM Bally Manufacturing Cigna Corporation British Telecom Beta (B) 0.95 1.40 1.00 0.60

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Foundations Of Financial Markets And Institutions

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