Return of apple and pg compare the sp 500
. If Procter & Gamble’s beta is 0.4, what is your best guess as to P&G’s excess return today?
a. If Apple’s beta is 1.4, the best guess for Apple’s excess return today would be approximately 2.8% (1.4 x 2%).
b. If Procter & Gamble’s beta is 0.4, the best guess for P&G’s excess return today would be approximately 0.8% (0.4 x 2%).