The manager of Alpha Beta Funds is considering addition of the following stocks in his portfolio: a.
Question:
The manager of Alpha Beta Funds is considering addition of the following stocks in his portfolio:
a. Calculate the required rate of return for each stock.
b. Assume that the assistant to the manager, using fundamental analysis, develops estimates of expected rate of returns, labeled (Ri), for these stocks. Determine which stock(s) the manager of Alma Funds should include in hisportfolio.
Transcribed Image Text:
Stocks Standard Deviation Covariance Expected (R 180% 10% 20% 14% 10% 0.012 0.0075 0.011 0.0175 0.016 20% 12% 1400 16% 15% 1400 690 R- 0.9
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Related Book For
Fundamentals Of Investing
ISBN: 9780135175217
14th Edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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