Consider the following information about the various states of economy and the returns of various investment alternatives for each scenario. Answer the questions that follow. % Return on T-Bills, Stocks and Market Index State of the Economy Probability TBills Phillips Payup Rubbermade Market Index Recession 0.2 7 -22 28 10 -13 Below Average 0.1 7 -2 14.7 -10 1 Average 0.3 7 20 0 7 15 Above Average 0.3 7 35 -10 45 29 Boom 0.1 7 50 -20 30 43 Mean Standard Deviation Coefficient of Variation Covariance with MP Correlation with Market Index Beta CAPM Req. Return Valuation (Overvalued/Undervalued/Fairly Valued) Nature of stock (Aggressive/Defensive) Question Fill the parts excluding probability section in the above table that are highlighted in Bold. You will notice that there are nineline items.
Consider the following information about the various states of economy and the returns of
various investment alternatives for each scenario. Answer the questions that follow.
% Return on T-Bills, Stocks and Market
Index
State of the Economy Probability TBills Phillips Payup Rubbermade Market Index
Recession 0.2 7 -22 28 10 -13
Below Average 0.1 7 -2 14.7 -10 1
Average 0.3 7 20 0 7 15
Above Average 0.3 7 35 -10 45 29
Boom 0.1 7 50 -20 30 43
Mean
Standard Deviation
Coefficient of Variation
Covariance with MP
Correlation with Market Index
Beta
Valuation
(Overvalued/Undervalued/Fairly
Valued)
Nature of stock
(Aggressive/Defensive)
Question
Fill the parts excluding probability section in the above table that are highlighted in Bold. You will notice that there are nineline items.
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