Your Perfect Assignment is Just a Click Away

We Write Custom Academic Papers

100% Original, Plagiarism Free, Customized to your instructions!


The following are the historic returns for the Chelle Computer Company:

The following are the historic returns for the Chelle Computer Company:

The following are the historic returns for the Chelle Computer Company:

Year Chelle Computer General Index
1 37 15
2 9 13
3 -11 14
4 8 -9
5 11 12
6 4 9
Based on this information, compute the following:
a. The correlation coefficient between Chelle Computer and the General Index.
b. The beta for the Chelle Computer Company
Chapter 8
8. As an equity analyst, you have developed the following return forecasts and risk estimates for two
different stock mutual funds (Fund T and Fund U):
Forecasted Return CAPM Beta
Fund T 9.0% 1.20
Fund U 10.0% 0.80
a. If the risk-free rate is 3.9 percent and the expected market risk premium (i.e. E( RM) – RFR)
is 6.1 percent, calculate the expected return for each mutual fund according to the CAPM.
b. Using the estimated expected returns from Part a along with your own return forecasts,
demonstrate whether Fund T and Fund U are currently priced to fall directly on the
security market line (SML), above the SML or below the SML.
c. According to your analysis, are Funds T and U overvlued, undervalued or properly valued?

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Writers Hero only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Writers Hero are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Writers Hero is known for timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Writers Hero, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.