Question: I'm getting that part wrong can someone help? this is the additional information b. What is the expected rate of return on each stock if

I'm getting that part wrong can someone help? I'm getting that part wrong can someone help? this is the additional
information b. What is the expected rate of return on each stock
this is the additional information if the market return is equally likely to be 8% or 20%?

b. What is the expected rate of return on each stock if the market return is equally likely to be 8% or 20%? (Round your answers to 2 decimal places.) Answer is complete and correct. Rate of return on A Rate of return on D 16.95 9.85 % % c. If the T-bill rate is 8%, and the market return is equally likely to be 8% or 20%, what are the alphas of the two stocks? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Alpha A Alpha D 4.10 % (2.30) % b. What is the expected rate of return on each stock if the market return is equally likely to be 8% or 20%? (Round your answers to 2 decimal places.) Answer is complete and correct. Rate of return on A Rate of return on D 16.95 % 9.85% c. If the T-bill rate is 8%, and the market return is equally likely to be 8% or 20%, what are the alphas of the two stocks? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Alpha A Alpha D 4.10 % (2.30) % Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market Return 88 20 Aggressive Stock 3.98 30 Defensive Stock 5.75 14 a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) Beta A Beta D 2.18 0.69 b. What is the expected rate of return on each stock if the market return is equally likely to be 8% or 20%? (Round your answers to 2 decimal places.) Rate of retum on A Rate of return on D 16.95 9.85% c. If the T-bill rate is 8%, and the market return is equally likely to be 8% or 20%, what are the alphas of the two stocks? (Negative

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!