Calculate the beta of security E with the S&P.B, %-3.7621.6719.8413.374.9811.35Year123456O 1.20O 0.40O 0.36O 0.24A, %10.6712.54-8.825.5627.3421.94C, %12.9845.2316.5214.28-15.531.28D, %25.5118.97-11.5721.4226.2217.23E, %8.9629.67-12.0725.6831.08-12.87S&P, %0.3415.944.66-4.4515.14-2.89

Beta refers to the metric that measures the sensitivity of the security against its benchmark, it is…

Calculate the beta of security E with the S&P. Year 1 2 3 4 5 6 O 1.20 O 0.40 0.36 0.24 A, % 10.67 12.54 -8.82 5.56 27.34 21.94 B, % -3.76 21.67 19.84 13.37 4.98 11.35 C, % 12.98 45.23 16.52 14.28 -15.53 1.28 D, % 25.51 18.97 -11.57 21.42 26.22 17.23 E, % 8.96 29.67 -12.07 25.68 31.08 -12.87 S&P, % 0.34 15.94 4.66 -4.45 15.14 -2.89

Calculate the beta of security E with the S&P. Year 1 2 3 4 5 6 O 1.20 O 0.40 0.36 0.24 A, % 10.67 12.54 -8.82 5.56 27.34 21.94 B, % -3.76 21.67 19.84 13.37 4.98 11.35 C, % 12.98 45.23 16.52 14.28 -15.53 1.28 D, % 25.51 18.97 -11.57 21.42 26.22 17.23 E, % 8.96 29.67 -12.07 25.68 31.08 -12.87 S&P, % 0.34 15.94 4.66 -4.45 15.14 -2.89

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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SECURITY MARKET LINE You are given the following historical data on market returns, r, and the returns on Stocks A and B, r, and rp: 8A-2 M' A Year 1 29.00% 29.00% 20.00% 2 15.20 15.20 13.10 (10.00) (10.00) 0.50 4 3.30 3.30 7.15 5 23.00 23.00 17.00 31.70 31.70 21.35
HSJ Foods is getting ready to produce a new line of products by investing 185000 OMR. The investment will result in additional cash flows of 52500 OMR , 81250, and 120000 over the next three years. What is the payback period for this project? Select one: a. 1.53 years b. 1.84 years c. 2.62 years d. None of these e. 2.42 years
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39. Consider the following information. Assuming this represents the Population. Investment X 4% -10% 8% 8 Year 1 2 3 14% Investment Y -6% 8% 12% -2% Risk Free Rate: 2% The Covariance of Investment X and Investment Y is (Hint: Covariance = 1/nΣ(xi — Xavg)(yi - Yavg) A. -32.60 B. -21.00 C. +144.82 D. -103.50 E. +114.34
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The following portfolio has an expected return of Security XYZ O 10.87; 1.08 O 10.87: 1.11 11.03; 1.07 O 11.03; 1.10 O 11.11; 1.09 Amount Invested $12,000 18,000 10,000 Expected Return 16.7% 7.8 94 percent and a beta of Beta 1.42 88 1.02
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Question: Answer using excel not CHAT GPT J14 X ✓ fx A B C D E F G The information contained in the table below shows the expected return and standard deviation for the market and Treasury Bills. 1 2 3 4 Market Data 56 Treasury Bills S&P 500 7 8 Required: 9 10 Rate of Return Standard Deviation 4.25% 12.00% 0.00% 21.00% Using the information in the table above and the varying risk aversions below, please calculate allocations to the risky and risk-free assets. 11 (Use cells A5 to C6 from the given information to complete this question.) 12 13 Risk Aversion Percent Allocated to the Market (S&P 500) Percent Allocated to Treasury Bills 14 4.00 15 2.00 16 1.50 Graded Worksheet Workbook Statistics +
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use attachment to answer questions This question relates to Diagram 1 from the 9.4 diagrams, which shows the Security Market Line. What is the expected return on the market? Select one: a. 20% b. 10% c. 15% d. 5%

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