You hear on the news that the S P TSX Composite Index was down 2 today relative to the risk free rate (the market 's excess return was 2 ) You are thinking about your portfolio and your investments in Research In Motion and WestJet a If Research In Motion 's beta is 1 5, what is your best guess as ...

Plan Compute the excess returns of Research in Motion and Westjet Exe ...

You hear on the news that the S&P/ TSX Composite Index was down 2% today relative to

Question:

You hear on the news that the S&P/ TSX Composite Index 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 Research In Motion and WestJet.
a. If Research In Motion's beta is 1.5, what is your best guess as to Research In Motion's excess return today?
b. If WestJet's beta is 0.5, what is your best guess as to WestJet'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...