Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 05, 2024

Consider the one-factor APT. The variance of the return on the factor portfolio is .08. The beta of a well-diversified portfolio on the factor is

Consider the one-factor APT. The variance of the return on the factor portfolio is .08. The beta of a well-diversified portfolio on the factor is 1.2. The variance of the return on the well-diversified portfolio is approximately _________.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

How does a confidence interval differ from the large sample interval estimator?

Answered: 1 week ago

Question

★★★★★

After buying a computer system, Sim Thomas must decide whether to purchase (1) A complete maintenance (or service) policy at a cost of $500, which would cover all maintenance costs; (2) A partial...

Answered: 1 week ago

Question

★★★★★

Plz show the full working thxxxx Flychucker Corporation is evaluating an extra dividend versus a share repurchase. In either case $4,000 would be spent. Current earnings are $2.1 per share, and the...

Answered: 1 week ago

Question

★★★★★

The Buckeye Corporation expects to pay a dividend of $3.15 per share at the end of next year. The firm expects the dividend to continue growing at the rate of 8% per year for the foreseeable future....

Answered: 1 week ago

Question

★★★★★

FNSACC412 Prepare Operational Budgets You are the bookkeeper for Brad's Vegan Ice Creamery. The business has had a bumper year in terms of sales volumes, but there are concerns about the fall in...

Answered: 1 week ago

Question

★★★★★

You have inherited the project management of a system implementation. The implementation of a group project has been broken down into the following activities, whose durations and dependencies are as...

Answered: 1 week ago

Question

★★★★★

A sample of a reinsurer's payments made under a proportional reinsurance arrangement consists of the following values, in units of thousands of pounds: 4.5, 6.8, 22.9, 1.4, 3.8, 10.2, 19.4, 32.1 If...

Answered: 1 week ago

Question

★★★★★

From the following facts prepare a depreciation schedule: Machine cost Residual value $30,000 $2,000 Expected to produce 56,000 units over its expected life Units produced 2013 1,000 2013 2014 2015...

Answered: 1 week ago

Question

★★★★★

Far in space, where gravity is negligible, a 225 kg rocket traveling at 95 m/s fires its engines. (Figure 1) shows the thrust force as a function of time. The mass lost by the rocket during these 30...

Answered: 1 week ago

Previous Question Next Question