You hear on the news that the S&P 500 was down 2.9% today relative to the risk-free rate (the market's excess return was - 2.9%). You are thinking about your portfolio and your investments in Hewlett Packard and Proctor and Gamble. a. If Hewlett Packard's beta is 1.1, what is your best guess as to Hewlett Packard's excess return today? b. If Proctor and Gamble's beta is 0.4, what is your best guess as to P&G's excess return today?   a. If Hewlett Packard's beta is 1.1, what is your best guess as to Hewlett Packard's excess return today? Hewlett Packard's excess return today is __ % ? (Round to one decimal place.)   b. If Proctor and Gamble's beta is 0.4, what is your best guess as to P&G's excess return today? Proctor and Gamble's excess return today __ % ? (Round to one decimal place.)

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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You hear on the news that the S&P 500 was down 2.9% today relative to the risk-free rate (the market's excess return was - 2.9%). You are thinking about your portfolio and your investments in Hewlett Packard and Proctor and Gamble.

a. If Hewlett Packard's beta is 1.1, what is your best guess as to Hewlett Packard's excess return today?

b. If Proctor and Gamble's beta is 0.4, what is your best guess as to P&G's excess return today?

 

a. If Hewlett Packard's beta is 1.1, what is your best guess as to Hewlett Packard's excess return today?

Hewlett Packard's excess return today is __ % ? (Round to one decimal place.)

 

b. If Proctor and Gamble's beta is 0.4, what is your best guess as to P&G's excess return today?

Proctor and Gamble's excess return today __ % ? (Round to one decimal place.)

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