You hear on the news that the S P 500 was down 2 today relative to the risk free rate (the markets excess return was 2 ) You are thinking about your portfolio and your investments in Apple and Procter Gamble a If Apples beta is 1 4, what is your best guess as to Apples excess return today b If Proc...

Plan Compute the excess returns of Apple and Procto ...

You hear on the news that the S&P 500 was down 2% today relative to the risk-free

Question:

You hear on the news that the S&P 500 was down 2% today relative to the risk-free rate (the market’s excess return was –2%). You are thinking about your and your investments in Apple and Procter & Gamble.
a. If Apple’s beta is 1.4, what is your best guess as to Apple’s excess return today?
b. If Procter & Gamble’s beta is 0.5, what is your best guess as to P&G’s excess return today?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...