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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 1 year ago
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