Question
In: Finance
The following table lists returns on the market portfolio and on Microsoft, each year from 1989...
- The following table lists returns on the market portfolio and on Microsoft, each year from 1989 to 1998.
|
Year |
Microsoft (%) |
Market Portfolio (%) |
|
1989 |
80.95 |
31.49 |
|
1990 |
-47.37 |
-3.17 |
|
1991 |
31 |
30.57 |
|
1992 |
132.44 |
7.58 |
|
1993 |
32.02 |
10.36 |
|
1994 |
25.37 |
2.55 |
|
1995 |
-28.57 |
37.57 |
|
1996 |
0.00 |
22.68 |
|
1997 |
11.67 |
33.10 |
|
1998 |
36.19 |
28.32 |
- A) Estimate the covariance in returns between Microsoft and the market portfolio.
- B) Estimate the variances in returns on both investments.
- C) Estimate the beta for Microsoft.
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I HAVE PROVIDE ANSWERS USING MANUAL CALCULATION AS WELL
AS EXCEL. THANK YOU
jeff jeffy answered 2 years agoRelated Solutions
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