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1) what are the beta and the expected return of Jar Jars portfolio? Give your answer rounded to two decimal places. 2) What is the
1) what are the beta and the expected return of Jar Jars portfolio? Give your answer rounded to two decimal places.
2) What is the beta of the project? Enter your answer rounded to two decimal places
Jar Jar forms an aggressive growth portfolio by investing 24% of his savings in GM stock, 24% in Nissan stock, 21% in Subaru stock, 14% in an index fund, and the last 17% is allocated on a bond fund. Assume for simplicity that the index fund is a good proxy to the market portfolio and has a beta equal to 1, whereas the bond fund is a good proxy to the riskless asset. The beta of GM stock is 1.26, the beta of Nissan is 1.45, and the beta of Subaru is 1.73. If the expected return of the market index is 12% and the risk-free asset yields 4%, what are the beta and the expected return of Jar Jar's portfolio? Give your answer rounded to two decimal places. This question has 2 parts (.e., you will be clicking "Verify" twice). What is the beta of the portfolio? Bp = Number The CFO of MediSearch plc believes that investing into a project which will develop a new drug for fighting the flu virus, promises a long-term annual return of 9%. The expected return of the market index is RM = 9.8%, the volatility of the market index is o M = 9.9%, and the risk-free asset earns Rf = 2.3%. The CFO has studied similar projects of other companies and believes that the covariance between the returns of this project and the returns of the market is PM = 0.0070 (in decimal form). This question has 3 parts i.e., you will be clicking "Verify" 3 times) What is the beta of the project? Enter your answer rounded to two decimal places NumberStep by Step Solution
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