1. Use the following information about two stocks (SCL, TAD), T-Bill, market portfolio, and Dr. Nick...
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1. Use the following information about two stocks (SCL, TAD), T-Bill, market portfolio, and Dr. Nick Riviera's portfolio: Asset Price per Share Expected Return Variance $75 $25 Squid Canneries Ltd (SCL) The Android's Dungeon (TAD) T-Bill (r) Market Portfolio (rm) 23% 11% 5% 21% 0.0841 0.0900 0.0000 0.0576 Covariance with rm 0.06912 0.02304 0.00000 0.05760 Dr. Nick Riviera's portfolio: he owns 1,000 shares of SCL, $50,000 (market value) of T-Bills, and he has sold short 1,000 shares of TAD. (a) Dr. Nick says, "Hi, Everybody! Find the expected return and beta of my portfolio." 1. Use the following information about two stocks (SCL, TAD), T-Bill, market portfolio, and Dr. Nick Riviera's portfolio: Asset Price per Share Expected Return Variance $75 $25 Squid Canneries Ltd (SCL) The Android's Dungeon (TAD) T-Bill (r) Market Portfolio (rm) 23% 11% 5% 21% 0.0841 0.0900 0.0000 0.0576 Covariance with rm 0.06912 0.02304 0.00000 0.05760 Dr. Nick Riviera's portfolio: he owns 1,000 shares of SCL, $50,000 (market value) of T-Bills, and he has sold short 1,000 shares of TAD. (a) Dr. Nick says, "Hi, Everybody! Find the expected return and beta of my portfolio."
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To find the expected return and beta of Dr Nick Rivieras portfolio we can use the weighted average o... View the full answer
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
Posted Date:
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