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1. The beta of the portfolio is A multiple-choice question with one possible answer. (Required) 0.8 1 1.5 3 2 2. The expected return of
1. The beta of the portfolio is
A multiple-choice question with one possible answer.(Required)
- 0.8
- 1
- 1.5
- 3
- 2
2. The expected return of the portfolio is
A multiple-choice question with one possible answer.(Required)
- 12%
- 4%
- 14%
- 10%
- 8%
- 6%
Example : Investment weights: A (50%) and B (50%) The covariance between A and market portfolio is 0.04. The covariance between B and market portfolio is 0.02. The variance of market portfolio is 0.02. The expected return of market portfolio is 10%. The risk-free rate is 2% Calculate beta of the portfolio and it expected return
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