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  3. 1. suppose the risk-free return is 4% and the mark

1. Suppose the risk-free return is 4% and the market portfolio has an expected return...

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Finance

1. Suppose the risk-free return is 4% and the market portfolio has an expected return of 10% and a volatility of 16%. Shares of TataBata have a 26% volatility and a correlation of 0.33 with the market. Calculate the beta for TataBata. What CML portfolio has equivalent market risk, and what is its return?

2. Suppose SweetFoods has a beta of 0.50, whereas WingSpan has a beta of 1.25. If the risk-free rate is 4%, and the expected return of the market portfolio is 10%, what is the expected return of an equally weighted portfolio of these 2, according to the CAPM?

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