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