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Question: (Expected return, standard deviation, and the capital asset pricing model) Below you have been provided the prices for Citigroup and the S&P 500 Index.

a. Calculate the monthly holding-period returns for Citigroup and the S&P 500 Index.

b. What are the average monthly returns and standard deviations for each?

c. Graph the Citigroup returns against the S&P 500 Index returns.

d. Use a spreadsheet to compute the slope of the characteristic line.

e. Interpret your findings. 6-17. (Security market line)

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92296964

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