Question: Please show with EXCEL formula to show how to solve the problem Suppose the risk-free rate is 3.4 percent and the market portfolio has an
Please show with EXCEL formula to show how to solve the problem
| Suppose the risk-free rate is 3.4 percent and the market portfolio has an expected return of 10.1 percent. The market portfolio has a variance of .0302. Portfolio Z has a correlation coefficient with the market of .20 and a variance of .3205. According to the capital asset pricing model, what is the expected return on Portfolio Z? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected return _________________% |
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