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A portfolio comprises Coke (beta of 1.4) and Wal-Mart (beta of 0.7). The amount invested in Coke is $10,000 and in Wal-Mart is $20,000. What
A portfolio comprises Coke (beta of 1.4) and Wal-Mart (beta of 0.7). The amount invested in Coke is $10,000 and in Wal-Mart is $20,000. What is the beta of the portfolio? O A. 0.98 B. 0.93 O C. 0.84 OD. 1.03 Using the data in the following table, estimate the average return and volatility for each stock. Year 2008 2009 2010 2011 2012 2013 Realized Returns Stock A Stock B - 2% 30% 17% 31% 8% 1% -6% -8% 2% - 3% 5% 24% The return of stock A is %. (Round to two decimal places.) ) The return of stock B is %. (Round to two decimal places.) The variance of stock A is (Round to five decimal places.) The variance of stock B is (Round to five decimal places.) Using the data in the following table, estimate the average return and volatility for each stock. Realized Returns Stock A Stock B Year 2008 2009 2010 2011 2012 2013 - 2% 17% 8% -6% 2% 5% 30% 31% 1% - 8% - 3% 24% The variance of stock A is (Round to five decimal places.) The variance of stock B is (Round to five decimal places.) The standard deviation of stock A is %. (Round to two decimal places.) The standard deviation of stock B is %. (Round to two decimal places.)
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