(CML) Below are the return statistics of stocks X and Y: a. Calculate the capital market line...

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(CML) Below are the return statistics of stocks X and Y:

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a. Calculate the capital market line (CML) using this data.

b. Find the difference in standard deviation between a portfolio on the CML and a portfolio on the efficient frontier, both with average return of 19%. What will be the weight of the risk-free asset in the CML portfolio?

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Principles Of Finance Wtih Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

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Question Posted: Jun 10, 2024 02:01 AM

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(CML) Below are the return statistics of stocks X and Y: a. Calculate the capital market line...

Question:

1 2 A B RETURN STATISTICS OF STOCKS X AND Y 3 Average return 4 Variance 5 Standard deviation 6 Covariance of returns 7 8 Risk-free return C X Y 19.00% 13.00% 0.09 0.03 30.00% 17.32% 0.01 3.00%

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Principles Of Finance Wtih Excel

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