You hear on the news that the S&P 500 was down 2.6% today relative to the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You hear on the news that the S&P 500 was down 2.6% today relative to the risk-free rate (the market's excess return was -2.6%). You are thinking about your portfolio and your investments in Zynga and Proctor and Gamble. a. If Zynga's beta is 1.4, what is your best guess as to Zynga's excess return today? b. If Proctor and Gamble's beta is 0.5, what is your best guess as to P&G's excess return today? a. If Zynga's beta is 1.4, what is your best guess as to Zynga's excess return today? You hear on the news that the S&P 500 was down 2.6% today relative to the risk-free rate (the market's excess return was -2.6%). You are thinking about your portfolio and your investments in Zynga and Proctor and Gamble. a. If Zynga's beta is 1.4, what is your best guess as to Zynga's excess return today? b. If Proctor and Gamble's beta is 0.5, what is your best guess as to P&G's excess return today? a. If Zynga's beta is 1.4, what is your best guess as to Zynga's excess return today?
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Reynolds number is: i. a dimensionless quantity ii. inversely proportional to viscosity of liquid iii. directly proportional to velocity of liquid iv. used for quantifying the laminar or turbulent...
-
What are reversing entries and why are they used? Give an example of an adjusting entry and a reversing entry for salaries payable, and the later entry to pay the salaries.
-
Use the hints to "guess" the solution of the following differential equations describing the rate of production of some chemical. In each case, check your solution, and graph the rate of change and...
-
Browne \& Company has no-par value common stock outstanding that is selling at \(\$ 40\) per share. The company's CEO believes that the stock price is undervalued and decides to buy back 10,000...
-
Determine whether the following transactions qualify as Type C reorganizations: a. The acquisition of all assets and liabilities of Bark Inc. by Ark Inc. for 20 percent of Ark's voting preferred...
-
Suppose that the foreign currency interest rate is higher than the domestic currency interest rate. What is the relationship between spot and forward exchange rates according to interest rate parity?
-
Given the four points in the plane A = (-3,6), B = (0, -2), C = (3,3), and D= (5,-6), the graph of the function f(x) con- sists of the three line segments AB, BC, and CD. Evaluate the integral below....
-
Alignment of a motor with sleeve bearings is critical to long life. The following true/false questions are all related to the alignment of a sleeve bearing motor: a. True or False: An electric motor...
-
What is meant by the term total energy?
-
Dan's Products, Inc., reported net income of \(\$ 80,000\), depreciation expense of \(\$ 2,000\), and cash flow from operations of \(\$ 60,000\). Compute the quality of income ratio. What does the...
-
The industry standard for balanced voltages in three phase systems is 2%. When the output data is taken on a VFD, the voltages are not easily read. What should be the current imbalance based on a...
-
Suppose your company sells services for \(\$ 300\) cash this month. Your company also pays \(\$ 100\) in wages, which includes \(\$ 20\) that was payable at the end of the previous month and \(\$...
-
For the differential equation, y' = x3 + y2, y(0) = 0, x 0(0.2)0.6, FIND three new values of y correct to 4dp using Runge-Kutta method. Then extend the solution for x = 0.8, 1.0 by using...
-
What key concerns must functional tactics address in marketing? Finance? POM? Personnel?
-
When a consumer spends her income on goods and services in such a way that her utility is maximized, she reaches a. monetary equilibrium. b. market equilibrium. c. consumer equilibrium. d. marginal...
-
What is the connection between the law of demand and the law of diminishing marginal utility?
-
In consumer equilibrium, a. the marginal utility from consumption is the same across all goods. b. individuals seek the combination of goods that maximizes their satisfaction, given limited income....
Study smarter with the SolutionInn App