Question: Need help figuring out the market characteristic lines/points and security market line. Having trouble doing the math for the second half (intercept, market beta, data

Need help figuring out the market characteristic lines/points and security market line. Having trouble doing the math for the second half (intercept, market beta, data points + the risk free rate, req. market return, market beta, investment req. & expected return, & difference for each of the investments. See screenshot attached below the first half of what I've completed (would like some confirmation that what I've got is correct so far and corrected if not) Please and thank you!

Case 12 deals with basic financial risk concepts of a medical group practice facing alternative
investment opportunities.
The student version of the model is a format guide only because the objective is for students to attempt
basic calculations themselves. The key to student success in this case lies in correct calculations and
interpretation of the data.
Estimated one-year return distributions:
State of the 1-Year Healthcare Inverse Biotech S&P
Economy Probability T-Bill Fund ETF Fund 500
Poor 0.1 7% -8% 18% -19% -15%
Below average 0.2 7% 2% 23% 0% 0%
Average 0.4 7% 14% 7% 13% 15%
Above average 0.2 7% 25% -3% 31% 30%
Excellent 0.1 7% 33% 2% 50% 45%
Historical return distributions:
1-Year Healthcare Inverse Biotech S&P
T-Bill Fund ETF Fund 500
Year 1 7% -8% 18% -19% -15%
Year 2 7% 2% 23% 0% 0%
Year 3 7% 14% 7% 13% 15%
Year 4 7% 25% -3% 31% 30%
Year 5 7% 33% 2% 50% 45%
Stand-alone return and risk:
1-Year Healthcare Inverse Biotech S&P
T-Bill Fund ETF Fund 500
Expected return [E(R)] 7.0% 13.5% 8.8% 14.5% 15.0%
Variance (Var) 0.0% 221.3% 94.7% 573.2% 450.0%
Standard deviation (SD) 0.0% 14.8% 9.7% 23.9% 21.2%
Coefficient of variation (CV) 0.00 1.12 1.04 1.60 1.40
Portfolio return and risk:
E(R) of E(R) of
Portfolio Portfolio
State of the Healthcare Fund / Healthcare Fund /
Economy Inverse ETF Biotech Fund
Poor -44.0% 42.0%
Below average 8.7% 0.0%
Average 2.0% 1.1%
Above average -8.3% 0.8%
Excellent 16.5% 0.7%
Portfolio Portfolio
Healthcare Fund / Healthcare Fund /
Inverse ETF Biotech Fund
Expected return [E(R)] 1.5% 0.9%
Variance (Var) 2.3% 0.4%
Standard deviation (SD) 1.5% 0.6%
Coefficient of variation (CV) 1.07 0.70
Correlation coefficient

Need help figuring out the market characteristic lines/points and security market line.

Correlation coefficient Market characteristic lines: S&P 500 1-Year T-Bill Healthcare Fund Inverse ETF Biotech Fund Intercept Market beta Data point Data point Data point Data point Data point Market Characteristic Lines Security market line: 1-Year T-Bill Healthcare Fund Inverse ETF Biotech Fund Risk-free rate Required market return Market beta Investment required return Investment expected return Difference Security Market Line Correlation coefficient Market characteristic lines: S&P 500 1-Year T-Bill Healthcare Fund Inverse ETF Biotech Fund Intercept Market beta Data point Data point Data point Data point Data point Market Characteristic Lines Security market line: 1-Year T-Bill Healthcare Fund Inverse ETF Biotech Fund Risk-free rate Required market return Market beta Investment required return Investment expected return Difference Security Market Line

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