Question: Below you will find MONTHLY return data for 3 companies (X, Y and Z) as well as for a major local market index (S&P). Assume
| Below you will find MONTHLY return data for 3 companies (X, Y and Z) as well as for a major local market index (S&P). | ||
| Assume that you can borrow and lend money at an annual risk free rate of 3% | ||
| A. What is the expected return for your optimal risky portfolio? | ||
| B. Using any of your measures indicate whether your portfolio was able to 'beat the market'. | ||
| Please select the number that corresponds to the choice from the table below. | ||
| Select One | ||
| 1 | Yes | |
| 2 | No | |
| NOTE: No points will be awarded for guessing. I need to be able to find your workings. | ||
| C. What is the amount or extent of diversification you were able to achieve? | ||
| You can use either measure. Both will be considered correct. | ||
| please just show steps to work out as cant post data tables |
| |
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