Suppose that the index model for stocks A and B is estimated from excess returns with the following results RA 3 20 1 10RM eA Rg 1 408 1 25RM eg 30 R squareA 0 28 R squares 0 12 Assume you create portfolio P with investment proportions of 0 70 in A and 0 30 in 8 a What is the standard deviation of...

a Standard deviation To calculate the standard deviation of the portfolio we can use the following f ...

Suppose that the index model for stocks A and B is estimated from excess returns with...

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Suppose that the index model for stock A and B is estimated from excess returns with the following result: R A = 3% + 7R M +eA R B = -2% +1.2 R M + eB M = 20% R-square A = 20 R-sqaure B = 12 What...
Suppose that the index model for stock A and B is estimated from excess returns with the following result: R A = 3% + 7R M +eA R B = -2% +1.2 R M + eB M = 20% R-square A = 20 R-sqaure B = 12 What...
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