Question: Question 3 The beta for a certain stock is 1.15, the risk-free rate is 5 percent, and the expected return on the market is 13
Question 3 The beta for a certain stock is 1.15, the risk-free rate is 5 percent, and the expected return on the market is 13 percent. Complete the following table to decompose the stocks return into the systematic return and the unsystematic return. Actual Returns Unexpected Returns Systematic Portion Unsystematic Portion Year R RM () () [()] [()][()] 2009 10 12 2010 11 8 2011 -8 -11 2012 -6 14 2013 28 7
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