a. The following table presents the three-stock portfolio. Stocks Portfolio Coefficient Expected Standard Weight Beta return deviation
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Question:
a. The following table presents the three-stock portfolio.
Stocks Portfolio Coefficient Expected Standard
Weight Beta return deviation
X0.250.500.400.07
Y0.250.500.250.05
P0.501.000.210.07
Variance of the market returns to range from 0.36 to 0.81.
a) What is the Beta coefficient of the portfolio?
b) What is the expected rate of return on the portfolio?
c) What is an actual variance of the portfolio, if the following actual
covariance between the stock's returns is given:
Cov (rX, rY = 0.020
Cov (rX, rP) = 0.035
Cov (rY, rP) = 0.035
Related Book For
Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell
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