Calculate the beta coefficient

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Reference no: EM13878833

Reference no: EM13878833

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1. Katherine Wilson is wondering how much she must undertake to generate an acceptable return on her portfolio. The risk-free return currently is 6%. The return on average stock (market return) is 14%. Use the CAMP to calculate the beta coefficient associated with a portfolio return of 20%

how can you calculate this using excel? Solve using excel

2. Jamie Wong is considering building an investment portfolio containing two stocks, L and M. Stock L will represent 65% of dollar value of the portfolio, and stock M will account for the other 35%. The expected returns over the next 6 years, 2015-2020, for each of the stocks are shown in the following table. Solve using excelformulas

year	Expected return	Expected return
Year	Stock L	Stock M
2015	15%	23%
2016	15%	23%
5017	17%	23%
2018	17%	23%
2019	17%	23%
2020	17%	23%

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Calculate the beta coefficient : 1. Katherine Wilson is wondering how much she must undertake to generate an acceptable return on her portfolio. The risk-free return currently is 6%. The return on average stock (market return) is 14%. Use the CAMP to calculate the beta coefficient a..

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During the same time period : Year-to-date, Oracle had earned a -1.50 percent return. During the same time period, Valero Energy earned 7.98 percent and McDonald's earned 0.64 percent.

a. Calculate the expected portfolio return, for each of the 6 years.

b. Calculate the expected value of portfolio returns, over the 6-years period.

c. Calculate the standard deviation of expected portfolio returns, over the 6-year period.

d. How would you characterize the correlation of returns of the two stocks L and M?