Solution-Estimate the beta for x and y

Estimate the beta for x and y

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Reference no: EM133122798

You are a portfolio manager at Collins Asset Management. Your research department has developed the information shown in the following table.

	Estimated expected return	Standard deviation	Correlation with market portfolio
Stock X	8.8%	18.46%	0.3
Stock Y	6.3%	11.75%	0.7
Market index	8.5%	13%	1
T-bills	3%	0	0

Estimate the beta for X and Y.
If the CAPM holds true for both X and Y, what are their required returns?
Identify and justify which stock (stock X or Y) would be more appropriate for an investor don\t use excel

Reference no: EM133122798

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Estimate the beta for x and y

Reference no: EM133122798

Reference no: EM133122798

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