Question: please show all calculation in detail Activity 2 Consider a portfolio with the following statistics. Assume the government b rate is 8% pa. The average
please show all calculation in detail
Activity 2 Consider a portfolio with the following statistics. Assume the government b rate is 8% pa. The average market return is 14%. Share Amount Invested ($) Weighting % Beta X 8,000 0.5 Y 12,000 1.5 1. Plot all 4 assets above on the Risk / Er graph. 2. What is the equation of the SML? 3. What is the expected return on Share X and Share Y? 4. What is the expected return on the portfolio? 5. What is the risk of this portfolio? Based your answer in part 4, approximately what do you think the Pb will be
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