Question: how is this solved? Question No 2 (7 marks) Consider the following information: Probability Return of Stock XYZ State of the Economy Good Very Good

how is this solved? Question No 2 (7 marks) Consider the

how is this solved?

Question No 2 (7 marks) Consider the following information: Probability Return of Stock XYZ State of the Economy Good Very Good Return of the Market Portfolio 8% 14% 40% 60% 12% 16% You have invested 40% of your savings in the risk-free asset, 40% in stock XYZ, and 20% in the market portfolio. You also know that the covariance between XYZ and the Market portfolio is 0.0005. What is the beta of your portfolio that includes the three assets

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