Using the information in the tables above, please calculate the expected excess return for this security using a single-factor model. Claythorne International Rogers and Rogers Capital Wargrave Limited Seton, Lombard, and Marston Incorporated Expected Return

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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B18
1
2
15
16
Company Data
3 Claythorne International
4 Rogers and Rogers Capital
5 Wargrave Limited
6 Seton, Lombard, and Marston Incorporated
7
8 Market Data
9 The Market
10
11
12 Required:
13
Note: Use cells A2 to C10 from the given information to complete this question.
14
17
A
Risk-Free Rate
B
18 Claythorne International
19 Rogers Rogers Capital
Alpha
1.25%
0.85%
1.71%
-0.18%
Expected Return
9.50%
3.32%
C
Expected Return
Beta
1.1000
1.5500
1.8500
-0.2000
Risk
22.71%
0.00%
Using the information in the tables above, please calculate the expected excess return for this security using a
single-factor model.
D
E
F
20 Wargrave Limited
21 Seton, Lombard, and Marston Incorporated
22
23
24
25 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work.
26 Nothing in this area will be graded, but it will be submitted with your assignment.
27
28
Transcribed Image Text:B18 1 2 15 16 Company Data 3 Claythorne International 4 Rogers and Rogers Capital 5 Wargrave Limited 6 Seton, Lombard, and Marston Incorporated 7 8 Market Data 9 The Market 10 11 12 Required: 13 Note: Use cells A2 to C10 from the given information to complete this question. 14 17 A Risk-Free Rate B 18 Claythorne International 19 Rogers Rogers Capital Alpha 1.25% 0.85% 1.71% -0.18% Expected Return 9.50% 3.32% C Expected Return Beta 1.1000 1.5500 1.8500 -0.2000 Risk 22.71% 0.00% Using the information in the tables above, please calculate the expected excess return for this security using a single-factor model. D E F 20 Wargrave Limited 21 Seton, Lombard, and Marston Incorporated 22 23 24 25 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. 26 Nothing in this area will be graded, but it will be submitted with your assignment. 27 28
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