Question

Use the following data to explore the risk-return relation and the concept of beta for Apple...

Use the following data to explore the risk-return relation and the concept of beta for Apple stock, Alphabet (Google) stock, and the S&P 500 market index:

Year

Apple Stock Price

Alphabet Stock Price

S&P 500 Market Index

2017

$174.09

$1,072.01

2,601.42

2016

$115.82

$807.80

2,238.83

2015

$105.26             

$765.84

2,043.94

2014

$113.99

$521.51

2,058.90

2013

$80.01

$559.76

1,848.36

2012

$72.80

$358.17

1,426.19
Market risk premium: RPM = 4.01%
Risk-free rate: rRF = 1.30%
  1. If you formed a portfolio that consisted of 50% Apple stock and 50% Alphabet stock, what would be its beta? (9 Points)
Beta Portfolio Weight
Apple
Alphabet
Portfolio Beta

***Please provide the Excel Functions

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