A portfolio consists of three assets. Asset 1 has a beta of 0.85, Asset 2 has a

Question:

A consists of three assets. Asset 1 has a beta of 0.85, Asset 2 has a beta of 1.3, and Asset 3 has a beta of 0.9. Asset 1 has an allocation of 50 percent, while Assets 2 and 3 each have an allocation of 25 percent. The variance of returns on a market index, cr'i, is 120. Calculate the variance of returns, assuming that the specific risk of the is negligible. Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...