# Question

Using Blume’s technique, where βi2 = 0.343 + 0.677βi1, calculate βi2 for the securities in Problem 5.

In Problem 5

In Problem 5

## Answer to relevant Questions

Suppose Forecast each security’s beta using the Vasicek technique. Assuming Is are uncorrelated and Calculate the following using the general multi-index model: - Expected returns - Variance of return - Covariance of return Given the following data What is the optimum portfolio assuming no short sales if RF = 5% and p = 0.5? In Problem 5, what is the minimum amount that the $5 outcome would have to be changed to so that the investor is indifferent between the two investments? In Problem 5 Given the data in the prior question, what is the standard deviation of return from the point of view of a U.S. investor and of a U.K. investor?Post your question

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