YYYYMM Return(Stk1) Return(Stk2) Return(Market) Return(T-bill) 201701 7.75% 3.00% 6.18% 0.20% 201702 1.27% 2.12% 1.63% 0.20% 201703 7.63% 1.50% 1.56% 0.15% 201704 9.25% -1.01% 2.09% 0.30% 201705 10.20% 2.66% 4.25% 0.30% 201706 4.33% 2.59% 0.41% 0.30% 201707 12.25% 10.41% 6.05% 0.35% 201708 4.98% -2.94% 2.37% 0.45% 201709 2.19% -1.69% -1.49% 0.20% 201710 4.05% 3.43% 2.51% 0.20% 201711 13.78% 8.29% 3.30% 0.15% 201712 2.01% 1.96% 2.54% 0.30% 201801 14.19% 23.60% 9.92% 0.30% 201802 -6.77% -4.18% -6.21% 0.55% 201803 -5.23% -10.14% -2.44% 0.60% 201804 -4.54% 1.93% 2.38% 0.20% 201805 2.32% -1.32% -1.10% 0.20% 201806 -1.35% -7.01% -4.97% 0.15% 201807 -9.80% -1.86% -1.29% 0.30% 201808 -4.28% -1.95% -2.43% 0.30% 201809 -4.94% 0.27% -0.36% 0.75% 201810 -17.39% -7.14% -10.11% 0.30% 201811 16.85% 9.62% 6.11% 0.55% 201812 0.64% -0.61% -2.49% 0.60% 201901 10.19% 7.68% 8.11% 0.20% 201902 -2.95% 10.90% 2.47% 0.20% 201903 7.50% 2.26% 1.46% 0.20% 201904 7.48% -0.59% 2.23% 0.20% 201905 -15.75% -8.31% -9.42% 0.15% 201906 8.16% 10.59% 6.10% 0.30% 201907 4.42% -3.70% -2.68% 0.30% 201908 -11.79% -8.26% -7.39% 0.55% 201909 1.66% -4.17% 1.43% 0.15% 201910 -2.85% 6.52% 3.12% 0.15% 201911 3.43% 0.90% -2.08% 0.15% 201912 13.20% 2.35% 7.00% 0.15%   Which answer is the closest value to the expected excess return on the stock Stk1?

Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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YYYYMM Return(Stk1) Return(Stk2) Return(Market) Return(T-bill)
201701 7.75% 3.00% 6.18% 0.20%
201702 1.27% 2.12% 1.63% 0.20%
201703 7.63% 1.50% 1.56% 0.15%
201704 9.25% -1.01% 2.09% 0.30%
201705 10.20% 2.66% 4.25% 0.30%
201706 4.33% 2.59% 0.41% 0.30%
201707 12.25% 10.41% 6.05% 0.35%
201708 4.98% -2.94% 2.37% 0.45%
201709 2.19% -1.69% -1.49% 0.20%
201710 4.05% 3.43% 2.51% 0.20%
201711 13.78% 8.29% 3.30% 0.15%
201712 2.01% 1.96% 2.54% 0.30%
201801 14.19% 23.60% 9.92% 0.30%
201802 -6.77% -4.18% -6.21% 0.55%
201803 -5.23% -10.14% -2.44% 0.60%
201804 -4.54% 1.93% 2.38% 0.20%
201805 2.32% -1.32% -1.10% 0.20%
201806 -1.35% -7.01% -4.97% 0.15%
201807 -9.80% -1.86% -1.29% 0.30%
201808 -4.28% -1.95% -2.43% 0.30%
201809 -4.94% 0.27% -0.36% 0.75%
201810 -17.39% -7.14% -10.11% 0.30%
201811 16.85% 9.62% 6.11% 0.55%
201812 0.64% -0.61% -2.49% 0.60%
201901 10.19% 7.68% 8.11% 0.20%
201902 -2.95% 10.90% 2.47% 0.20%
201903 7.50% 2.26% 1.46% 0.20%
201904 7.48% -0.59% 2.23% 0.20%
201905 -15.75% -8.31% -9.42% 0.15%
201906 8.16% 10.59% 6.10% 0.30%
201907 4.42% -3.70% -2.68% 0.30%
201908 -11.79% -8.26% -7.39% 0.55%
201909 1.66% -4.17% 1.43% 0.15%
201910 -2.85% 6.52% 3.12% 0.15%
201911 3.43% 0.90% -2.08% 0.15%
201912 13.20% 2.35% 7.00% 0.15%

 

Which answer is the closest value to the expected excess return on the stock Stk1?

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