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(Solved): You hear on the news that the S\&P 500 was down 2.4% today relative to the risk-free rate (the mark ...



You hear on the news that the S\&P 500 was down \( 2.4 \% \) today relative to the risk-free rate (the markets excess return
You hear on the news that the S\&P 500 was down today relative to the risk-free rate (the market's excess return was . You are thinking about your portfolio and your investments in Zynga and Proctor and Gamble. a. If Zynga's beta is 1.3 , what is your best guess as to Zynga's excess return today? b. If Proctor and Gamble's beta is 0.5 , what is your best guess as to P\&G's excess return today?


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Beta of Zynga = 1.2 Market excess return = -1.3% Zynga's excess return today = Beta of Zynga x Market excess return

Zynga's excess return today = -1.56% = -1.6% (rounded to one decimal place)


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