Question: PLEASE ANSWER BOTH PART A. AND PART B. THANK YOU. You hear on the news that the S&P 500 was down 1.9% today relative to

 PLEASE ANSWER BOTH PART A. AND PART B. THANK YOU. You

PLEASE ANSWER BOTH PART A. AND PART B. THANK YOU.

You hear on the news that the S&P 500 was down 1.9% today relative to the risk-free rate (the market's excess return was - 1.9%). You are thinking about your portfolio and your investments in Hewlett Packard and Proctor and Gamble. a. If Hewlett Packard's beta is 1.1, what is your best guess as to Hewlett Packard's excess return today? b. If Proctor and Gamble's beta is 0.5, what is your best guess as to P&G's excess return today? a. If Hewlett Packard's beta is 1.1, what is your best guess as to Hewlett Packard's excess return today? Hewlett Packard's excess return today is %. (Round to one decimal place.)

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!