Question
Consider the following information concerning three portfolios, the market portfolio, and the risk-free asset: Portfolio RP P P x 15% 31% 1.85 y 14 26
Consider the following information concerning three portfolios, the market portfolio, and the risk-free asset:
| Portfolio | RP | P | P |
| x | 15% | 31% | 1.85 |
| y | 14 | 26 | 1.25 |
| z | 8.3 | 16 | 0.85 |
| Market | 11.2 | 21 | 1 |
| Risk-Free | 4.8 | 0 | 0 |
Assume that the correlation of returns on Portfolio Y to returns on the market is 0.82. What is the percentage of Portfolio Ys return that is driven by the market? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
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The Value Investor's Handbook
Authors: Andrew P.C.
1st Edition
1098810449, 978-1098810443
