Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Consider the following annual closing prices of stock A, values
of market index (S&P 500) and Treasury bills rate.
1
2
3
45678
A
B
C
D
Date Stock A Prices (in $) Market Index Value Risk Free Rate (in %)
Period 1
112
12102
Period 2
95
10773
120
12680
99
10487
121
11475
128
12318
90
8587
105
9914
129
11772
110
9987
121
12042
102
10613
Period 3
Period 4
Period 5
Period 6
Period 7
9
Period 8
10 Period 9
11 Period 10
12 Period 11
13 Period 12
14
15
What is the value of CAPM beta for stock A?
1.45
1.24
1.36
1.4
1.67
1.41
1.69
1.72
1.24
1.08
1.52
1.71
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Transcribed Image Text:Consider the following annual closing prices of stock A, values of market index (S&P 500) and Treasury bills rate. 1 2 3 45678 A B C D Date Stock A Prices (in $) Market Index Value Risk Free Rate (in %) Period 1 112 12102 Period 2 95 10773 120 12680 99 10487 121 11475 128 12318 90 8587 105 9914 129 11772 110 9987 121 12042 102 10613 Period 3 Period 4 Period 5 Period 6 Period 7 9 Period 8 10 Period 9 11 Period 10 12 Period 11 13 Period 12 14 15 What is the value of CAPM beta for stock A? 1.45 1.24 1.36 1.4 1.67 1.41 1.69 1.72 1.24 1.08 1.52 1.71
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