Question: Round off all answers to decimal places Please !!!!!!!!!!!!!!!!!!!!!!!!!!! Security Beta Actual Return A 1.22 10.82% B 0.84 8.54% C 2.21 17.52% D 0.55 6.25%

 Round off all answers to decimal places Please !!!!!!!!!!!!!!!!!!!!!!!!!!! Security Beta

Round off all answers to decimal places Please !!!!!!!!!!!!!!!!!!!!!!!!!!!

Actual Return A 1.22 10.82% B 0.84 8.54% C 2.21 17.52% D

Security Beta Actual Return A 1.22 10.82% B 0.84 8.54% C 2.21 17.52% D 0.55 6.25% E 0.36 5.66% Return for TBill = 3.5% Expected Return for S & P 500 : 9.5% a. Based on the CAPM, What are the expected returns on the 5 stocks (A, B, C, D, E)? If the actual returns above are implied by the current market price, which stocks are undervalued, overvalued, fairly priced? b. If you invest 40% in the S & P 500, 20% in TBill, and 8 % each in the 5 stocks, what is the beta of your portfolio

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