Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the market index has average return 8% and standar

The market index has average return 8% and standard deviation 25%. The risk-free rate is...

60.1K

Verified Solution

Question

Finance

image

The market index has average return 8% and standard deviation 25%. The risk-free rate is 3%. A portfolio 'A' has beta 0.9, idiosyncratic variance of 0.05, and an MP-measure of 0.02. What is the average return on the portfolio

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

Basic Math
1.2K views

A fair coin is flipped until a head appears. Let the number of flips required be...

Programming
1.2K views

Describe the mechanism used by a web application to prevent its session cookies from being used...

Biology
1.2K views

LO people ne diso raised money She collected enough for more than a million bottles...

Geometry
1.2K views

m Bem Which expressions can be added together to represent the volume of the attached...

Calculus
1.2K views

Find the general power series solution centered at Xo= 0 for the differential equationy' -...

Calculus
1.2K views

the system of equations using Cramer s F 6x 6y 6 12x 12y 17

Algebra
1.2K views

1 Solve the equation 12 12 1 2x12 3x 2x 3x 12 12 Ius Tho...

Accounting
1.2K views

Chapter 8 The general ledger controlling account for Accounts Receivable has a balance...

Accounting
1.2K views

The stockholders equity section of Ayayai Corp.s balance sheet consists of common stock ($7 par)...

Accounting
1.2K views

The LaGrange Corporation had the following budgeted sales for the first half of the current...

Accounting
1.2K views

What is the Present value of a OMR 2000, 8-year loan with 8% p.a simple...

Finance
1.2K views

If Lews Steel Forms purchases $668,000 of new equipment, they can lower annual operating costs...