Question: 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

a. Compute the beta coefficients for Intel, Ford, Anheuser Busch and Merck.

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)

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