Exhibit 8.1
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c c }
& { \text { Rates of Return } } \
\text { Year } & \text { RA Computer } & \text { Markat Index } \
\hline 1 & 13 & 17 \
2 & 9 & 15 \
3 & - 11 & 6 \
4 & 10 & 8 \
5 & 11 & 10 \
6 & 6 & 12
\end{array}$$
-Refer to Exhibit 8.1.If you expected the return on the Market Index to be 12%,what would you expect the return on RA Computer to be?
A) 7.26%
B) 6.75%
C) 8.00%
D) 9.37%
E) -3.29%

Question

Exhibit 8.1
Use the Information Below for the Following Problem(S)
 $$\begin{array} { c c c } 
&  { \text { Rates of Return } } \
\text { Year } & \text { RA Computer } & \text { Markat Index } \
\hline 1 & 13 & 17 \
2 & 9 & 15 \
3 & - 11 & 6 \
4 & 10 & 8 \
5 & 11 & 10 \
6 & 6 & 12
\end{array}$$
-Refer to Exhibit 8.1.If you expected the return on the Market Index to be 12%,what would you expect the return on RA Computer to be?
A) 7.26%
B) 6.75%
C) 8.00%
D) 9.37%
E) -3.29%

Quizplus · Accepted Answer

The expected return on RA Computer can be calculated using the historical relationship between RA Computer and the Market Index. By calculating the average return of RA Computer when the Market Index is 12%, we find it to be approximately 7.26%.

Exhibit 81 Use the Information Below for the Following Problem(S)

Exhibit 81
Use the Information Below for the Following Problem(S)