QA. What is beta of an asset for each scenario: 1) S&P return = 8%, σm...

QA. What is beta of an asset for each scenario:

1) S&P return = 8%, σm = 5, σx = 5, market risk premium = 4%, ρxm = 0.67

2) Rx = 10%, market risk premium = 4%, t-bill rate = 4%

3) Risk free rate = 5%, σxm = 32, σm = 6, σx = 4

4) σm = 6, σx = 4, Rx = 10%, NIKKEI return = 12%, risk free rate = 2%

Solutions

Expert Solution

Please check the attached images for complete calculation of beta for all the four questions

ekkarill92 answered 11 months ago

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