Rework Problem 13 for portfolio Q with investment proportions of .50 in P, .30 in the market

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Rework Problem 13 for portfolio Q with investment proportions of .50 in P, .30 in the market index, and .20 in T-bills.
Suppose that the index model for stocks A and B is estimated from excess returns with the following results:
RA = 3% 1 .7RM + eA
RB = 22% 1 1.2RM + eB
σM = 20%; R-squareA 5 .20; R-squareB = .12

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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...
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Related Book For  answer-question

Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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