i. (Simpleand In Simpleland there are only w risky stocks. A and B, whose detuits...

80.2K

Verified Solution

Question

Finance

image

i. (Simpleand In Simpleland there are only w risky stocks. A and B, whose detuits are isted in abte 7 4 TABLE 7.4 Detafls of Stocks A and B Number of shares outstanding 100 t50 Price per share rate of return Expected Standard deviation of retur?n Siock A Stock B 50 2 00 15% 12% 15% 9% Furthemore, the correlation coeficient between the relurns of stocks A and B is PAB There is also a risk-free asse, and Sin?plcland satisfies the CAPM exactly (a) What is the expected rate of return oi the market portfolio? (b) What is the sdrd deviton of the ak poto? (c) What is the be of stock A? (d) Whal is the risk-tree rate in Simplelnd

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