Consider a Treasury bill with a rate of return of 6% and the following risky securities:...
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Consider a Treasury bill with a rate of return of 6% and the following risky securities: Security Expected Return 20% Anglo American Platinum Ltd. Anglo American ple Prosus N.V. 9% Anheuser-Busch InBev SA/NV Naspers Ltd. 10% 14% 8% A) Anglo American plc B) Naspers Ltd. C) Prosus N.V. D) Anheuser-Busch InBev SA/NV E) Anglo American Platinum Ltd. Variance 0.1008 0.0116 0.0977 0.0522 0.0223 The investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. The security the investor should choose as part of her complete portfolio to achieve the best CAL would be Consider a Treasury bill with a rate of return of 6% and the following risky securities: Security Expected Return 20% Anglo American Platinum Ltd. Anglo American ple Prosus N.V. 9% Anheuser-Busch InBev SA/NV Naspers Ltd. 10% 14% 8% A) Anglo American plc B) Naspers Ltd. C) Prosus N.V. D) Anheuser-Busch InBev SA/NV E) Anglo American Platinum Ltd. Variance 0.1008 0.0116 0.0977 0.0522 0.0223 The investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. The security the investor should choose as part of her complete portfolio to achieve the best CAL would be
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Answer To identify the best CAL first we have to calculate the Sharp ratio Sharp ratio indicate exce... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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