Homework Help is Here – Start Your Trial Now!
Business
Finance
OA Graphical derivation of beta A firm wishes to estimate graphically the betas for two assets, A and B. It has gathered the return data shown in the following table for the market portfolio and for both assets over the last 10 years, 2009-2018: a. Which of the following graphs represents the graphical derivation of beta for assets A and B? b. Use the characteristic lines from part a to estimate the betas for assets A and B. c. Use the betas found in part b to comment on the relative risks of assets A and B. a. Which of the following graphs represents the graphical derivation of beta for assets A and B? (Select the best answer below.) Asset Return (% Beta Derivation 20 15 20-150 540 15 20 -10- --15- Asset A Asset B 20 OC. Market Retum (%) Beta Derivation 20- 15 Asset Return (%) 10- 15 20 5 -10 -15 G -20 Asset A Asset B Market Return (%) b. Using the characteristic lines from part a, which of the following pairs of data represents the beta estimates for assets A and B? (Select the best answer below.) OA. (-1.089,-0.719) OB. (-1.089,0.719) OC. (1.089,0.719) OD. (1.089,-0.719) c. Using the belas found in part b, which asset is more risky? (Select the best answer below.) OA. Asset A B. Asset B COD. OB. Beta Derivation 20 15- Asset Return (%) Asset Return (%) 10- 54 -20-15 5 5 10 15 20 5 -10- -15 Asset A Asset B -20 Market Return (%) Beta Derivation 20 15- 10- -20-15 10 S 5 Q 15 20 -5 -10- -15- Asset A -Asset B -20- Market Return (%)

OA Graphical derivation of beta A firm wishes to estimate graphically the betas for two assets, A and B. It has gathered the return data shown in the following table for the market portfolio and for both assets over the last 10 years, 2009-2018: a. Which of the following graphs represents the graphical derivation of beta for assets A and B? b. Use the characteristic lines from part a to estimate the betas for assets A and B. c. Use the betas found in part b to comment on the relative risks of assets A and B. a. Which of the following graphs represents the graphical derivation of beta for assets A and B? (Select the best answer below.) Asset Return (% Beta Derivation 20 15 20-150 540 15 20 -10- --15- Asset A Asset B 20 OC. Market Retum (%) Beta Derivation 20- 15 Asset Return (%) 10- 15 20 5 -10 -15 G -20 Asset A Asset B Market Return (%) b. Using the characteristic lines from part a, which of the following pairs of data represents the beta estimates for assets A and B? (Select the best answer below.) OA. (-1.089,-0.719) OB. (-1.089,0.719) OC. (1.089,0.719) OD. (1.089,-0.719) c. Using the belas found in part b, which asset is more risky? (Select the best answer below.) OA. Asset A B. Asset B COD. OB. Beta Derivation 20 15- Asset Return (%) Asset Return (%) 10- 54 -20-15 5 5 10 15 20 5 -10- -15 Asset A Asset B -20 Market Return (%) Beta Derivation 20 15- 10- -20-15 10 S 5 Q 15 20 -5 -10- -15- Asset A -Asset B -20- Market Return (%)

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 4P
See similar textbooks
icon
Related questions
Question
OA Graphical derivation of beta A firm wishes to estimate graphically the betas for two assets, A and B. It has gathered the return data shown in the following table for the market portfolio and for both assets over the last 10 years, 2009-2018: a. Which of the following graphs represents the graphical derivation of beta for assets A and B? b. Use the characteristic lines from part a to estimate the betas for assets A and B. c. Use the betas found in part b to comment on the relative risks of assets A and B. a. Which of the following graphs represents the graphical derivation of beta for assets A and B? (Select the best answer below.) Asset Return (% Beta Derivation 20 15 20-150 540 15 20 -10- --15- Asset A Asset B 20 OC. Market Retum (%) Beta Derivation 20- 15 Asset Return (%) 10- 15 20 5 -10 -15 G -20 Asset A Asset B Market Return (%) b. Using the characteristic lines from part a, which of the following pairs of data represents the beta estimates for assets A and B? (Select the best answer below.) OA. (-1.089,-0.719) OB. (-1.089,0.719) OC. (1.089,0.719) OD. (1.089,-0.719) c. Using the belas found in part b, which asset is more risky? (Select the best answer below.) OA. Asset A B. Asset B COD. OB. Beta Derivation 20 15- Asset Return (%) Asset Return (%) 10- 54 -20-15 5 5 10 15 20 5 -10- -15 Asset A Asset B -20 Market Return (%) Beta Derivation 20 15- 10- -20-15 10 S 5 Q 15 20 -5 -10- -15- Asset A -Asset B -20- Market Return (%)
Transcribed Image Text:OA Graphical derivation of beta A firm wishes to estimate graphically the betas for two assets, A and B. It has gathered the return data shown in the following table for the market portfolio and for both assets over the last 10 years, 2009-2018: a. Which of the following graphs represents the graphical derivation of beta for assets A and B? b. Use the characteristic lines from part a to estimate the betas for assets A and B. c. Use the betas found in part b to comment on the relative risks of assets A and B. a. Which of the following graphs represents the graphical derivation of beta for assets A and B? (Select the best answer below.) Asset Return (% Beta Derivation 20 15 20-150 540 15 20 -10- --15- Asset A Asset B 20 OC. Market Retum (%) Beta Derivation 20- 15 Asset Return (%) 10- 15 20 5 -10 -15 G -20 Asset A Asset B Market Return (%) b. Using the characteristic lines from part a, which of the following pairs of data represents the beta estimates for assets A and B? (Select the best answer below.) OA. (-1.089,-0.719) OB. (-1.089,0.719) OC. (1.089,0.719) OD. (1.089,-0.719) c. Using the belas found in part b, which asset is more risky? (Select the best answer below.) OA. Asset A B. Asset B COD. OB. Beta Derivation 20 15- Asset Return (%) Asset Return (%) 10- 54 -20-15 5 5 10 15 20 5 -10- -15 Asset A Asset B -20 Market Return (%) Beta Derivation 20 15- 10- -20-15 10 S 5 Q 15 20 -5 -10- -15- Asset A -Asset B -20- Market Return (%)
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage
SEE MORE TEXTBOOKS