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Consider the following information concerning three portfolios, the market portfolio, and the risk-free asset: Portfolio R P P P X 16.5 % 37 % 1.40
Consider the following information concerning three portfolios, the market portfolio, and the risk-free asset: |
Portfolio | RP | P | P | ||
X | 16.5 | % | 37 | % | 1.40 |
Y | 15.5 | 32 | 1.15 | ||
Z | 7.4 | 22 | .70 | ||
Market | 11.8 | 27 | 1.00 | ||
Risk-free | 5.2 | 0 | 0 |
Assume that the correlation of returns on Portfolio Y to returns on the market is .88. What is the percentage of Portfolio Ys return that is driven by the market?(Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
Ys return explained by market | %
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