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Consider a world which the assumption of the CAPM Consider the figure below where is the marketportowhere the one to the minimum curve of the
Consider a world which the assumption of the CAPM Consider the figure below where is the marketportowhere the one to the minimum curve of the meaning securities and where P, an individual security Assume that so that that and the EP)The bea of Mis 100 and that of security P75 posto lend and bomow more start of a ) EK Questions a. Calculate the level of unique risk of security Ps Round your answer to two decimals (eg 1.231) and show your calculations (2 points) b. Describe the composition of portfolio Pole. If you want to hold P, what long/short positions in percentages of your wealth should you hold? You do not have to show your calculations. (2 points) c. Calculate the Sharpe Ratio of Round your answer to two decimals (eg. 1,23%) and show your calculations. (2 points) Consider a world which the assumption of the CAPM Consider the figure below where is the marketportowhere the one to the minimum curve of the meaning securities and where P, an individual security Assume that so that that and the EP)The bea of Mis 100 and that of security P75 posto lend and bomow more start of a ) EK Questions a. Calculate the level of unique risk of security Ps Round your answer to two decimals (eg 1.231) and show your calculations (2 points) b. Describe the composition of portfolio Pole. If you want to hold P, what long/short positions in percentages of your wealth should you hold? You do not have to show your calculations. (2 points) c. Calculate the Sharpe Ratio of Round your answer to two decimals (eg. 1,23%) and show your calculations. (2 points)
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