# Beta and Alpha Assignment | Homework For You

Problem 1. Consider the following table, which gives a security analysts expected return on two stocks for two particular market returns:

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
 States Market Return Aggressive Stock Defensive Stock Bad Good 5% 25% -2% 38% 6% Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. 12%

a) What are the betas of the two stocks?

b) What is the expected rate of return on each stock if the market return is equally likely to be 5% or 25%?

c) If the T-bill rate is 6% and the market return is equally likely to be 5% or 25%, draw the SML for this economy.

d) Plot the two securities on the SML graph. What are the alphas of each?

Problem 2. Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%.

a) A share of stock sells for \$50 today. It will pay a dividend of \$6 per share at the end of the year. Its beta is 1.2. What do investors expect the stock to sell for at the end of the year?

b) A stock has an expected rate of return of 4%. What is its beta? Get Finance homework help today

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Other
Great work.
Customer 462927, May 24th, 2022
Aviation
Great job!
Customer 454145, April 12th, 2020
Healthcare & Medical
An exceptional blogpost
Customer 463337, December 14th, 2022
Military
Good work.
Customer 456821, June 22nd, 2022
Thank you for the corrections. This is what I expected my paper to be.
Customer 460555, November 22nd, 2021
Psychology
The paper was beautifully written and exceeded my expectations. John was really helpful in ensuring that the files were attached to the order when I had issues attaching them. Thank you to the tutor and John. I was really excited that I received my paper ahead of time!
Customer 452455, March 28th, 2023
Education
Thank you!
Customer 463875, April 29th, 2023
English 101
Thank You!
Customer 454425, June 21st, 2020
Human Resources Management (HRM)
GREAT Effort.
Customer 463035, July 8th, 2022
English 101
I don’t have any comment it’s very good
Customer 454499, June 17th, 2020
Good job!
Customer 463469, October 29th, 2022
SEO
A job well done
Customer 463679, April 30th, 2023
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend