Question: 4. Consider the following table, which gives a security analysts expected return on two stocks for two particular market returns 6% 16 2.1% 25 36%

4. Consider the following table, which gives a security analysts expected return on two stocks for two particular market returns 6% 16 2.1% 25 36% Ex a. What are the betas of the two stocks? (Round your answers to 2 decimal places,) Beta A Beta D b. What is the expec decimal places.) ted rate of return on each stock if the market return is equally likely to be 6% or 16%, (Round your answers to 2 Rate of return on A Rate of return on D c. If the T-bill rate is 8%, and the market values should be indicated by a minus sign. Do not round intermediate caiculations. Round your answers to 2 decimal places.) e u n is equally ikely to be 6% or 16% what are the apnas othe wo stoc s, Negative Alpha A Alpha D Prac
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
