Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 4-) (20 points) rf=2%, rm= 10% according to the

4-) (20 points) Rf=2%, Rm= 10% According to the CAPM model ...

50.1K

Verified Solution

Question

Finance

4-) (20 points) Rf=2%, Rm= 10%

According to the CAPM model

Expected Return X= 10

Expected Return Y= 6

Portfolios:

A portfolio of stock X and rf with a 50% equal weighted investment yielded a STANDARD DEVIATION of 3.

A portfolio of stock Y and rf with a 25% investment in stock Y yielded a STANDARD DEVIATION of 1.

A portfolio of the market and rf with a 50% investment in the market yielded a STANDARD DEVIATION of 1.

An equally weighted portfolio of stock X and Y yielded a variance of 1.

Find the variance of the portfolio that invests EQUALLY WEIGHTED in X, Y, and Rf.

Find the BETA of the portfolio that invests EQUALLY WEIGHTED in X, Y, and Rf.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

There is a bag with 600 cubes in it. Some of the cubes are red...

Biology
1.2K views

Describe the selection process of alpha/beta T cells and use the following words in your description:...

Medical Sciences
1.2K views

2.What recommendations could you make to the researchers to safeguard the ethical standards for research in...

Accounting
1.2K views

Discuss any aspect of "Process Costing.

Physics
1.2K views

16 Two wave are represented by equation 9 a sin oot 9 a cos cot...

Basic Math
1.2K views

8 A new car is purchased at a cost of 25000 The value of the...

Basic Math
1.2K views

Which two of the expressions below are equivalem x 2 4 32 A

Statistics
1.2K views

Suppose that a recent article stated that the mean time spent in jail by a...

Calculus
1.2K views

The function f x x bl intersects g x 2 x 4 at exactly one...

Accounting
1.2K views

Beacon Incorporated received a gift of land and building in Twin Pines Park as an...

Accounting
1.2K views

Partners A, B, C, and D have been operating ABCD Partnership for ten years. Due...

Finance
1.2K views

Mobile Inc. has 2 million shares of stock outstanding. The stock currently sells for $12.50...