You hear on the news that the S&P 500 was down 2.1% today relative to the risk-free rate (the market's excess return was -2.1%). You are thinking about your portfolio and your investments in Zynga and Proctor and Gamble. a. If Zynga's beta is 1.3, what is your best guess as to Zynga'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 Zynga's beta is 1.3, what is Zynga's excess return today is your best guess as to Zynga's excess return today? % (Round to one decimal place.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
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You hear on the news that the S&P 500 was down 2.1% today relative to the risk-free rate (the market's excess return was -2.1%). You are thinking about your portfolio and your investments in
Zynga and Proctor and Gamble.
a. If Zynga's beta is 1.3, what is your best guess as to Zynga'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 Zynga's beta is 1.3, what is your best guess as to Zynga's excess return today?
Zynga's excess return today is%. (Round to one decimal place.)
COTTE
Transcribed Image Text:You hear on the news that the S&P 500 was down 2.1% today relative to the risk-free rate (the market's excess return was -2.1%). You are thinking about your portfolio and your investments in Zynga and Proctor and Gamble. a. If Zynga's beta is 1.3, what is your best guess as to Zynga'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 Zynga's beta is 1.3, what is your best guess as to Zynga's excess return today? Zynga's excess return today is%. (Round to one decimal place.) COTTE
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