Question: Suppose that the correlation coefficient between the returns of IBM and the market was 0.78, the standard deviation of returns of IBM was 42%, the

Suppose that the correlation coefficient between the returns of IBM and

Suppose that the correlation coefficient between the returns of IBM and the market was 0.78, the standard deviation of returns of IBM was 42%, the standard deviation of the market was 26%, the risk free rate was 300, and the expected return on the market was 10%. What is your estimate of IBM's beta given the information? a. b. What is IBM's expected rate of return according to the CAPM

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