Answer A B and C

Homework: M4: Chapter 11 Homework Save Score: 0 of 1 pt 8 of 9 (3 complete) HW Score: 22.22%, 2 of 9 pts P11-47 (similar to) Question Help Suppose you group all the stocks in the world into mutually exclusive portfolios (each stock is in only one portfolio): growth stocks and value stocks. Suppose the two portfolios have equal size (in terms of total value), a correlation of 0.5, and the following characteristics: [ . The risk free-rate is 3%. a. What is the expected return and volatility of the market portfolio (which is a 50-50 combination of the two portfolios)? b. Calculate the Sharpe ratios of the value stock, growth stock, and market portfolio. c. Does the CAPM hold in this eco nomy? (Hint: Is the market portfolio efficient?) a. What is the expected return and volatility of the market portfolio (which is a 50-50 combination of the two portfolios)? The expected return of the market portfolio is |%. (Round to one decimal place.) Data Table X (Click on the following icon in order to copy its contents into a spreadsheet.) Expected Return Volatility Value Stocks 11% 10% Growth Stocks 15% 28% Print Done