Question: Using the beta from the previous problem, and Rf = 6 % , a Rmkt = 1 8 % compute Ks . Given D 0

Using the beta from the previous problem, and Rf =6%, a Rmkt =18% compute Ks. Given D0= $4.00; D1=5; D2=6; D3=7; D4=8; D5=9 and then g=-4%. Find P0.2024
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(8 points)
\table[[\table[[State of],[the world]],Probability,\table[[Security],[Returns X]],\table[[Security],[Returns],[Market]]],[Boom,0.2,0.35,0.20],[Normal,0.6,0.20,0.11],[Recession,0.2,0.08,0.03]]
(1) Is this distribution symmetrical? (2) Calculate the covariance. 3 Calculate the variance of the portfolio made up of 70%x and 30% of the Market. (4) Find the Beta for the firm. 5 Find the correlation coefficient.
 Using the beta from the previous problem, and Rf =6%, a

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