The table below provides five years of realized returns for both Stock XYZ and the market portfolio. Use this information to estimate Stock XYZ's beta with the market.
The table below provides five years of realized returns for both Stock XYZ and the market portfolio. Use this information to estimate Stock XYZ's beta with the market.
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 1P
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Question
![The table below provides five years
of realized returns for both Stock
XYZ and the market portfolio. Use
this information to estimate Stock
XYZ's beta with the market.
Year Year Year Year Year
1
2
3
4
Stock
2% 17% 27% 23% -9%
XYZ
Return
Market -6% 17% -7% 13% -3%
Return
0.4413
0.4797
0.5181
O 0.5565
O 0.5949](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6244bb8-8ef5-4b2a-8b0f-64dd51f16a30%2Fef310469-b74d-4966-8162-3f8657c472b4%2F5tf09yc_processed.png&w=3840&q=75)
Transcribed Image Text:The table below provides five years
of realized returns for both Stock
XYZ and the market portfolio. Use
this information to estimate Stock
XYZ's beta with the market.
Year Year Year Year Year
1
2
3
4
Stock
2% 17% 27% 23% -9%
XYZ
Return
Market -6% 17% -7% 13% -3%
Return
0.4413
0.4797
0.5181
O 0.5565
O 0.5949
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