In the above question,F₁ F₂_, and F₃ were reasonably accurate estimates based on previous analysis and F₄ was not.Empirical data showed that the return on security A was actually 24.50%.What is a reasonable estimate for F4? (Assume reasonable values for n₁,n₂,n₃,and n₄) A) 27.11% B) 33.33% C) 31.25% D) 40.37%

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Quizplus · Accepted Answer

ER_(A) = [24.50% - (5.5% + 0.3*6% + 0.6*7% + 0.9*10%)]/ 0.12 = 0.3333 F1S1S1W1F1F1F10 33.33%

In the Above Question,F1 F2, and F3 Were Reasonably Accurate

In the Above Question,F₁ F₂_, and F₃ Were Reasonably Accurate