q edi ai xobni 002 182 odt bommotioquo bad si expole ni a The following information...

Transcribed Image Text:

q edi ai xobni 002 182 odt bommotioquo bad si expole ni a The following information is given on two risky assets A and B and a risk-free asset F. oddi tanings 91 to hoqque ter 200mbi 18 vode 200 Asset Expected return Beta Andy's investment A BMFizioyd cham 8.5% 6.3% 4.2% 1.57 1.12 $6,000 $3,000 $1,000 S Brenda's investment $4,000 $5,000 $6,000 TOW TO ort is bog od lliw muime [0000:0]>w to vos 101 ag bogado muimen.[000200] The required return for Andy's investment is 7.55%.gov to allobe (a) (b) (c) 9 S 20W llob sas Torio on end.ad animoza Adilsow asmuo a ymsal Explain why the Beta for asset F is not given. Calculate the expected risk premium on the market return. Calculate the alpha, the abnormal return, for Brenda's investment. 11910 ymats of begrado od lli q edi ai xobni 002 182 odt bommotioquo bad si expole ni a The following information is given on two risky assets A and B and a risk-free asset F. oddi tanings 91 to hoqque ter 200mbi 18 vode 200 Asset Expected return Beta Andy's investment A BMFizioyd cham 8.5% 6.3% 4.2% 1.57 1.12 $6,000 $3,000 $1,000 S Brenda's investment $4,000 $5,000 $6,000 TOW TO ort is bog od lliw muime [0000:0]>w to vos 101 ag bogado muimen.[000200] The required return for Andy's investment is 7.55%.gov to allobe (a) (b) (c) 9 S 20W llob sas Torio on end.ad animoza Adilsow asmuo a ymsal Explain why the Beta for asset F is not given. Calculate the expected risk premium on the market return. Calculate the alpha, the abnormal return, for Brenda's investment. 11910 ymats of begrado od lli