Question
Answer the Following Questions Regarding Data: A. Calculate the total risk for each portfolio. B. Calculate the beta coefficient for portfolios A and B
Answer the Following Questions Regarding Data:
A. Calculate the total risk for each portfolio.
B. Calculate the beta coefficient for portfolios A and B ، With an explanation of the beta value of each portfolio.
C. Calculate the coefficient of determination for each portfolio with an explanation of its value for each portfolio.
D. Calculating the required return for each portfolio, assuming that the rate of return on treasury bills is 5%.
E. Calculate the covariance for each portfolio with the market.
F. A brief explanation of the systematic risks and presenting examples of those risks
Portfolio A | Portfolio B | Mraket M |
0.12 | 0.12 | 0.09 |
0.12 | 0.12 | 0.09 |
0.14 | 0.16 | 0.1 |
0.14 | 0.2 | 0.1 |
0.16 | 0.14 | 0.11 |
0.16 | 0.16 | 0.11 |
0.15 | 0.17 | 0.12 |
0.17 | 0.14 | 0.12 |
0.17 | 0.18 | 0.12 |
0.18 | 0.18 | 0.13 |
0.18 | 0.18 | 0.13 |
0.18 | 0.16 | 0.13 |
0.17 | 0.17 | 0.12 |
0.16 | 0.16 | 0.13 |
0.18 | 0.16 | 0.13 |
0.18 | 0.15 | 0.13 |
0.18 | 0.18 | 0.13 |
0.18 | 0.22 | 0.13 |
0.2 | 0.22 | 0.14 |
0.2 | 0.23 | 0.14 |
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
A Calcul ate the total risk for each portfolio ANS WER Port folio A 0 06 Port folio B 0 10 Market M 0 04 C AL C UL ATIONS For Port folio A Standard Dev iation 0 12 0 15 2 0 12 0 16 2 0 14 0 17 2 0 14 ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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