Question: Chapter 8 Assignment i Seved Help Save & Exit Submit Suppose that the index model for stocks A and B is estimated from excess returns

Chapter 8 Assignment i Seved Help Save & Exit Submit Suppose

Chapter 8 Assignment i Seved Help Save & Exit Submit Suppose that the index model for stocks A and B is estimated from excess returns with the following results: 4 RA = 2, 60 % + 0.90R + A Rg - -2.00% + 1.20RM + es OM = 26%; R-squarea = 0.21; R-squares = 0.12 11.11 points Assume you create portfolio P with investment proportions of 0.70 in A and 0.30 in B. a. What is the standard deviation of the portfolio? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) eBook Print Standard deviation References b. What is the beta of your portfolio? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) Portfolio beta

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