Question
1.) Calculate your portfolio beta to two places if you own two assets, and you have $35 invested in asset A which has a beta
1.) Calculate your portfolio beta to two places if you own two assets, and you have $35 invested in asset A which has a beta of 0.99 and $65 in asset B which has a beta of 1.22.
2.) A firm's stock has 50% chance of a 10% rate of return and a 50% chance of a 25% rate of return. What is the standard deviation of return for this stock? Answer as a percent return to the nearest hundredth of a percent as in xx.xx without entering a percent symbol.
3.) What is the EAR (percent to two places) if the bank pays 8.2 % nominal interest rate but compounds the money daily (use 365 days in a year)?
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