Question: Using the data below about stock D and the market portfolio M, please calculate the beta of security D with respect to the market. Joint

Using the data below about stock D and the market portfolio M, please calculate the beta of security D with respect to the market.

Using the data below about stock D and the market portfolio M,

Joint Probability 5/20 = .25 5/20 = .25 4/20 = .20 2/20 = .10 4/20 = 20 Return on Security D 8% 10% 11% 15% 19% Return on Security M 6% 10% 9% 10% 11% Assume the risk-free rate is 4.36%

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