Brittany has employed your services to evaluate the risk and return characteristics of two securities she is interested in purchasing The following information has been supplied to you on these two securities and the market portfolio CAR DMP Market Portfolio Expected return 0 21 0 14 0 17 Standard deviation 0 18 0 09 0 14 Beta 0 49 Correlation with Market Portfolio 0 62 0 76 1 00 What is the Beta of security CAR Assuming Brittany wanted to invest in only one of these two securities, which one would you recommend she purchase given that she does not currently own any securities Assuming Brittany desires to construct a two asset portfolio containing DMP and the market portfolio, and she has requested for the targeted portfolio Beta to be 0 90, how much of her original $50,000 must she invest into DMP Brittany recently saw an online advertisement for a portfolio manager who earnt a 23 rate of return while maintaining a portfolio Beta of 1 35 Please advise Brittany as to whether this portfolio manager achieved an alpha, assuming the risk free rate was 2

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Brittany has employed your services to evaluate the risk and return characteristics of two securities she is interested in purchasing. The following information has been

Brittany has employed your services to evaluate the risk and return characteristics of two securities she is interested in purchasing. The following information has been supplied to you on these two securities and the market portfolio:

	CAR	DMP	Market Portfolio
Expected return	0.21	0.14	0.17
Standard deviation	0.18	0.09	0.14
Beta	?	0.49	?
Correlation with Market Portfolio	0.62	0.76	1.00

What is the Beta of security CAR?
Assuming Brittany wanted to invest in only one of these two securities, which one would you recommend she purchase given that she does not currently own any securities?
Assuming Brittany desires to construct a two asset portfolio containing DMP and the market portfolio, and she has requested for the targeted portfolio Beta to be 0.90, how much of her original $50,000 must she invest into DMP?
Brittany recently saw an online advertisement for a portfolio manager who earnt a 23% rate of return while maintaining a portfolio Beta of 1.35. Please advise Brittany as to whether this portfolio manager achieved an alpha, assuming the risk-free rate was 2%.