State of the Economy Recession Below Average Average Probability 0.2 0.1 0.3 % Return on T-Bills, Stocks and Market Index T- Bills 7 7 7 Phillips -22 -2 20 Pay- up 28 14.7 0 Rubber- made 10 -10 7 Market Index -13 1 15 00
State of the Economy Recession Below Average Average Probability 0.2 0.1 0.3 % Return on T-Bills, Stocks and Market Index T- Bills 7 7 7 Phillips -22 -2 20 Pay- up 28 14.7 0 Rubber- made 10 -10 7 Market Index -13 1 15 00
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
Related questions
Question
Fill the parts in the table that are shaded in yellow.
![State of the Economy
Recession
Below Average
Average
Above Average
Boom
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)
Probability
0.2
0.1
0.3
0.3
0.1
% Return on T-Bills, Stocks and Market
Index
T-
Bills
7
7
7
7
7
Phillips
-22
-2
20
35
50
Pay-
up
28
14.7
0
-10
-20
Rubber-
made
10
-10
7
45
30
Market
Index
-13
1
15
29
43](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9ab3ab97-bcc4-4fab-a368-ccdc38d8974c%2Fc2cf81bb-6a4f-41b2-8011-9a27025779c3%2F3axv29_processed.png&w=3840&q=75)
Transcribed Image Text:State of the Economy
Recession
Below Average
Average
Above Average
Boom
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)
Probability
0.2
0.1
0.3
0.3
0.1
% Return on T-Bills, Stocks and Market
Index
T-
Bills
7
7
7
7
7
Phillips
-22
-2
20
35
50
Pay-
up
28
14.7
0
-10
-20
Rubber-
made
10
-10
7
45
30
Market
Index
-13
1
15
29
43
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