Question: Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: H a. What are the betas

Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: H a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) Beta A 2.285 Beta D .685 b. What is the expected rate of return on each stock if the market return is equally likely to be 7% or 20%? (Round your answers to 2 decimal places.) Rate 01 return on A 18.15 % Rate at return on D 9.55 \"lo c. If the T-bill rate is 8%, and the market return is equally likely to be 7% or 20%. what are the alphas of the two stocks? (Negative values should be indicated by a minus sign. Do not round intermed calculations. Round your answers to 2 decimal places.) Alpha A % Alpha D %
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