Question
Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 5 % 0 Market 13.2 1.0 A 8.0 0.6 a. Calculate the expected return of
Consider the following information:
| Portfolio | Expected Return | Standard Deviation | |
| Risk-free | 5 | % | 0 |
| Market | 13.2 | 1.0 | |
| A | 8.0 | 0.6 | |
|
| |||
a. Calculate the expected return of portfolio A with a beta of 0.6. (Round your answer to 2 decimal places.)
Expected return %
b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
Alpha %
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Clever Girl Finance Learn How Investing Works Grow Your Money
Authors: Bola Sokunbi
1st Edition
1119696739, 978-1119696735
