Question: Question 4 (Total 15 marks) Portfolio Actual return Standard deviation Beta X 10.2% 12% 1.2 Y 8.8% 9.9% 0.8 Additionally, the risk premium for the

Question 4 (Total 15 marks) Portfolio Actual return Standard deviation Beta

Question 4 (Total 15 marks) Portfolio Actual return Standard deviation Beta X 10.2% 12% 1.2 Y 8.8% 9.9% 0.8 Additionally, the risk premium for the market portfolio is 5% and the risk-free rate is 4.5%. Required: a. For both Portfolio X and Y, calculated the expected returns using the CAPM. (4 marks) b. Evaluate the performances of Portfolio X and Y using your answers from Part a and the information given in the table above. (5 marks) c. What is the essential aspect of assessing portfolio performance using an asset pricing model? Explain your answer in details. (6 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Question 4 (Total 15 marks) Portfolio Actual return Standard deviation Beta X 10.2% 12% 1.2 Y 8.8% 9.9% 0.8 Additionally, the risk premium for the market portfolio is 5% and the risk-free rate is...

Portfolio Actual return Standard deviation Beta X 12% 1.2 10.2% 8.8% Y 9.9% 0.8 Additionally, the risk premium for the market portfolio is 5% and the risk-free rate is 4.5%. Required: a. For both...

Portfolio Actual return Standard deviation Beta X 10.2% 12% 1.2 Y 8.8% 9.9% 0.8 Additionally, the risk premium for the market portfolio is 5% and the risk-free rate is 4.5%. a. For both Portfolio X...

Portfolio Actual return Standard deviation Beta X 10.2% 12% 1.2 Y 8.8% 9.9% 0.8 Additionally, the risk premium for the market portfolio is 5% and the risk-free rate is 4.5%. Required: a. For both...

I need help with this assignment. I am assuming that the answers are not very complex. FN480 Unit 5 Assignment 1. A client's portfolio is set up according to the table below. According to the IPS...

ANswer all the questions correctly. Task 01. 3 An Anticipated Output Shock [30 points] Consider a two-period small open endowment economy populated by a large number of households with preferences...

Ensure to answer all questions. Don't answer only one question. I will give 6 dislikes if only 1 question is answered pr plagiarized. don't copy N.B. (1) All questions are compulsory. (2) All...

Newton's second law says force (f) is equal to mass (m) times acceration (a). A scientist wants to calculate the force of an object where the acceleration of gravity (g) is 9.8(m)/(s^(2)). Use the...

According to ISO19650, The CDE has been hacked and files containing the key codes of your facility have been downloaded. What protocol should be followed? A: Built asset insurance policy B: Built...

Which module in web 3 . py is used to interact with Ethereum accounts web 3 . txpool web 3 . personal web 3 . net web 3 . eth

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

c. What were you expected to do when you grew up?

f. What was your neighborhood like? Discuss your answers with classmates. Analyze how your own cultural position is unique and how it is similar to that of others.

5. What are the advantages of a dialectical approach to intercultural communication?