Question: QUESTION 1 Compute beta for XYZ if its volatility is 50% and its correlation wit the market is 30%. Market expected return and volatility are

QUESTION 1

Compute beta for XYZ if its volatility is 50% and its correlation wit the market is 30%. Market expected return and volatility are 10% and 20%.

QUESTION 2

Compute beta for a portfolio that invests $300 in the market portfolio and $200 in the risk free asset.

QUESTION 3

Apple has a beta of 1.2. The market is up 5% today, what is your best guess for Apple's return today? Assume zero risk free rate

QUESTION 4

XYZ has a negative beta, what can we say about its correlation with the market portfolio?

Correlation is ...

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