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I have completed part of the problem by locating the beta, Please-(Answered)

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I have completed part of the problem by locating the beta,? Please provide the formula with the answer


Betas and Expected Stock Returns. Use the capital asset pricing model to estimate the

 

expected return for each of these stocks. You will need a figure for the current Treasury bill rate.

 

You can find this also on finance.yahoo.com by clicking on Bonds?Rates. Assume for your

 

estimates a market risk premium of 7%.

 

Try comparing the stock betas of

 

Google (GOOG), @ 691.02

 

The Home Depot (HD), @132.73

 


 

BETA 0.990855

 


 

Du Pont (DD), @66.41

 


 

BETA 1.85099

 


 

Altria Group (MO), and @ 62.19

 


 

BETA 0.686051

 


 

Caterpillar (CAT). @ 77.75

 

.

 


 

BETA 1.032

 


 

BETA 1.238.34

 


 

2. Fund Betas. Log on to www.fidelity.com and look at the list of mutual funds that are managed

 

by Fidelity. Some of these funds, such as the Aggressive Growth Fund, appear from their names

 

to be high-risk. Others, such as the Balanced Fund, appear to be low-risk. Pick several apparent

 

high- and low-risk funds and then check whether their betas really do match the fund?s name.

 


 

 

Paper#9209958 | Written in 27-Jul-2016

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