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a) How to measure systematical risk? Which stock is riskiest in terms of systematical risk, please show the calculation? b) How to measure total risk,
a) How to measure systematical risk? Which stock is riskiest in terms of systematical risk, please show the calculation?
b) How to measure total risk, which stock is the riskiest in terms of total risk? Please show the calculation?
c) If your portfolio has an equal investment share the three stocks, what is the portfolio expected return? The standard deviation?
d) Given the portfolio information ni (d), what is the portfolio's market beta?
e) If the inflation rate is 3%, what's the portfolio's real return?
You are given the following information The market return is 7%, and the risk-free rate is 2%. a) How to measure systematical risk? Which stock is riskiest in terms of systematical risk, please show the calculation? (5 marks) b) How to measure total risk, which stock is the riskiest in terms of total risk? Please show the calculation? (5 marks) c) If your portfolio has equal investment share the three stocks, what is the portfolio expected return? The standard deviation? (5 marks) d) Given the portfolio information in (d), what is the portfolio's market beta? (2 marks) e) If the inflation rate is 3%, what's the portfolio's real return? (2 marks)Step by Step Solution
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