Suppose that you were given the following data for past excess quarterly returns for Markese...

Question

Suppose that you were given the following data for past excess quarterly returns for Markese Imports, Inc., and for the market portfolio:

QUARTER	EXCESS RETURNS MARKESE	EXCESS RETURNS MARKET PORTFOLIO
1	0.04	0.05
2	0.05	0.1
3	−0.04	−0.06
4	−0.05	−0.10
5	0.02	0.02
6	0	−0.03
7	0.02	0.07
8	−0.01	−0.01
9	−0.02	−0.08
10	0.04	0
11	0.07	0.13
12	−0.01	0.04
13	0.01	−0.01
14	−0.06	−0.09
15	−0.06	−0.14
16	−0.02	−0.04
17	0.07	0.15
18	0.02	0.06
19	0.04	0.11
20	0.03	0.05
21	0.01	0.03
22	−0.01	0.01
23	−0.01	−0.03
24	0.02	0.04

On the basis of this information, graph the relationship between the two sets of excess returns and draw a characteristic line. What is the approximate beta? What can you say about the systematic risk of the stock, based on past experience?

Robert · Accepted Answer

Quarter
Excess return 
Markese
Excess Return 
Market 
Portfolio
1 0.04 0.05
2 0.05 0.1
3 -0.04 -0.06
4 -0.05 -0.1
5 0.02 0.02
6 0 -0.03
7 0.02 0.07
8 -0.01 -0.01
9 -0.02 -0.08
10 0.04 0
11 0.07 0.13
12 -0.01 0.04
13 0.01 -0.01
14 -0.06 -0.09
15 -0.06 -0.14
16 -0.02 -0.04
17 0.07 0.15
18 0.

Suppose that you were given the following data for past excess quarterly returns for Markese Imports, Inc., and for the market portfolio: QUARTER EXCESS RETURNS MARKESE EXCESS RETURNS MARKET PORTFOLIO...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment