Exhibit 5 Month Market Asset R Asset S 1 3% –5% 4% 2 –5% -6% 3% 3 1% –4% 4% 4 –7% 8% 3% 5 6% –9% 4% Use Exhibit 5. The data gives the historic return over the past five...

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Finance

Exhibit 5
Month
Market
Asset R
Asset S
1
3%
–5%
4%
2
–5%
-6%
3%
3
1%
–4%
4%
4
–7%
8%
3%
5
6%
–9%
4%
Use Exhibit 5. The data gives the historicreturn over the past five months for the market portfolio and twoassets: R and S. Which of the answers below best describes thehistoric beta (?) for R and S?
A. ?R < 0; ?S = 0
B. ?R > 0; ?S > 1
C. ?R > 0; ?S < 0
D. ?R > 1; ?S = 0
E. ?R < 0; ?S > 0

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The given solution has been attached in the excel sheet whichshall provide complete reference formula for the given case Alsothe student can approach with See Answer

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Transcribed Image Text

Exhibit 5MonthMarketAsset RAsset S13%–5%4%2–5%-6%3%31%–4%4%4–7%8%3%56%–9%4%Use Exhibit 5. The data gives the historicreturn over the past five months for the market portfolio and twoassets: R and S. Which of the answers below best describes thehistoric beta (?) for R and S?A. ?R < 0; ?S = 0B. ?R > 0; ?S > 1C. ?R > 0; ?S < 0D. ?R > 1; ?S = 0E. ?R < 0; ?S > 0

Exhibit 5
Month	Market	Asset R	Asset S
1	3%	–5%	4%
2	–5%	-6%	3%
3	1%	–4%	4%
4	–7%	8%	3%
5	6%	–9%	4% Use Exhibit 5. The data gives the historicreturn over the past five months for the market portfolio and twoassets: R and S. Which of the answers below best describes thehistoric beta (?) for R and S? A. ?R < 0; ?S = 0 B. ?R > 0; ?S > 1 C. ?R > 0; ?S < 0 D. ?R > 1; ?S = 0 E. ?R < 0; ?S > 0