You hear on the news that the S&P 500 was down 1.6% today relative to the risk-free rate (the market's excess returnwas -1.6%). You are thinking about your portfolio and your investments in Hewlett Packard and Proctor and Gamble.a. If Hewlett Packard's beta is 1.3, what is your best guess as to Hewlett Packard's excess return today?b. If Proctor and Gamble's beta is 0.5, what is your best guess as to P&G's excess return today?a. If Hewlett Packard's beta is 1.3, what is your best guess as to Hewlett Packard's excess return today?Hewlett Packard's excess return today is %. (Round to one decimal place.)

Step 1: Identify the InputsMarket Excess Return (Rm): -1.6% (given in the question)Beta (β): 1.3…

Answered: You hear on the news that the S&P 500…

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

See similar textbooks

Similar questions

You hear on the news that the S&P 500 was down 1.7% today relative to the risk-free rate (the market's excess return was - 1.7%). You are thinking about your portfolio and your investments in Hewlett Packard and Proctor and Gamble. a. If Hewlett Packard's beta is 1.2, what is your best guess as to Hewlett Packard's excess return today? b. If Proctor and Gamble's beta is 0.5, what is your best guess as to P&G's excess return today?
You hear on the news that the S&P 500 was down 2.1% today relative to the risk-free rate (the market's excess return was -2.1%). You are thinking about your portfolio and your investments in Hewlett Packard and Proctor and Gamble. a. If Hewlett Packard's beta is 1.1, what is your best guess as to Hewlett Packard's excess return today? b. If Proctor and Gamble's beta is 0.4, what is your best guess as to P&G's excess return today? KIDE a. If Hewlett Packard's beta is 1.1, what is your best guess as to Hewlett Packard's excess return today? Hewlett Packard's excess return today is %. (Round to one decimal place.)
You hear on the news that the S&P 500 was down 2.5% today relative to the risk-free rate (the market's excess return was -2.5%). You are thinking about your portfolio and your investments in Hewlett Packard and Proctor and Gamble. a. If Hewlett Packard's beta is 1.2, what is your best guess as to Hewlett Packard's excess return today? b. If Proctor and Gamble's beta is 0.5, what is your best guess as to Proctor and Gamble's excess return today? a. If Hewlett Packard's beta is 1.2, what is your best guess as to Hewlett Packard's excess return today? Hewlett Packard's excess return today is %. (Round to one decimal place.)
You hear on the news that the S&P 500 was down 2.9% today relative to the risk-free rate (the market's excess return was - 2.9%). You are thinking about your portfolio and your investments in Hewlett Packard and Proctor and Gamble. a. If Hewlett Packard's beta is 1.1, what is your best guess as to Hewlett Packard's excess return today? b. If Proctor and Gamble's beta is 0.4, what is your best guess as to P&G's excess return today? a. If Hewlett Packard's beta is 1.1, what is your best guess as to Hewlett Packard's excess return today? Hewlett Packard's excess return today is __ % ? (Round to one decimal place.) b. If Proctor and Gamble's beta is 0.4, what is your best guess as to P&G's excess return today? Proctor and Gamble's excess return today __ % ? (Round to one decimal place.)
You hear on the news that the S&P 500 was down 2.1% today relative to the risk-free rate (the market's excess return was -2.1%). You are thinking about your portfolio and your investments in Zynga and Proctor and Gamble. a. If Zynga's beta is 1.3, what is your best guess as to Zynga's excess return today? b. If Proctor and Gamble's beta is 0.4, what is your best guess as to P&G's excess return today? a. If Zynga's beta is 1.3, what is your best guess as to Zynga's excess return today? Zynga's excess return today is%. (Round to one decimal place.) COTTE
Please complete in Excel (and show work)
Please help with this question with full working out.
You are considering buying some share in The Wayne Coporation as part of your retirement account. First, you want to calculate the expected return for Wayne Corp's stock to see if it meets your very high standards. You have estimateed the 3 for Wayne Corp to be 2.38, the risk free rate in the market to be 2%, and the expected return on the market to be 20. What is the expected return for Wayne Corp? (Answer in Percentage terms and Round to 2 decimals)
You have been asked to calculate the required return for a stock that you are considering investing in. You recently looked up the risk-free rate (as measured by Treasury bonds) and found it to be 1%. You also looked up the current market return of the S&P 500 and found it to be 12. If the firm has a beta of 1.2, what is its required return?
You have the following data on the securities of three firms. If the risk-free rate last year was 3%, and the return on the market was 11%, which firm had the best performance on a risk-adjusted basis? Use CAPM to calculate expected returns and compare them with actual returns. Return last year Beta Firm A 10% 1.12 Firm B 11% 1.0 Firm C 12% 0.65 O Firm B O Firm C O There is no difference in performance on a risk-adjusted basis O Firm A
what is the expected return and should you buy it?
Please solve part d only. Thank you for your help.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS