Question
1-Jason-Julio Company has devised an investment portfolio for their client with Stock A and Stock B, 30 and 70 percent respectively. Consider the following closing
1-Jason-Julio Company has devised an investment portfolio for their client with Stock A and Stock B, 30 and 70 percent respectively. Consider the following closing prices for Stocks A, B, and the underlying market. They have asked you for help with the questions below. Assume Risk Free rate is 2%
a- Calculate expected return for the market with about 95% probability. Assume the return has a normal distribution.
b- Calculate the portfolios return
c- Calculate the portfolios beta
d- Calculate the portfolios standard deviation
e- Calculate risk premia for Stocks A and B.
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
