FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the one-factor APT. The variance of the return on the factor portfolio is .08. The beta of a well-divided 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-divided portfolio on the factor is 1.2. The variance of the return on the well-diversified portfolio is approximately _____. A.1152 B.1270 C.1521 D.1342

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

A Practical Guide To Quantitative Finance Interviews

A Practical Guide To Quantitative Finance Interviews

Authors: Xinfeng Zhou

1st Edition

1735028800, 978-1735028804

More Books

Students also viewed these Finance questions

Question

★★★★★
You want to have $2 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10 percent and the inflation rate is 3.8 percent. What real amount must...

Answered: 1 week ago

Question

★★★★★
Complete in C + + . Instructions: MobileElement implementation with your balance ( ) code. Your task is to complete a program that reads a description of a mobile and computes, for each bar, the...

Answered: 1 week ago

Question

★★★★★
What types of ongoing collaboration with outside agencies would you suggest to ensure that the team continues to understand and respond to Daphnes needs? What types of ongoing professional...

Answered: 1 week ago

Question

★★★★★
Complete the 2019 federal income tax return for Sarah Hamblin. Be sure to include only required tax forms when completing the tax return. For purposes of this assignment, unless instructed otherwise,...

Answered: 1 week ago

Question

★★★★★
please explain in detail using financial calculator Depreciation Methods Wendy's boss wants to use straight-line depreciation for the new expansion project because he said it will give higher net...

Answered: 1 week ago

Question

★★★★★
post resolution please. Question 46 FINANCIAL RATIOS: Which financial ratio is defined as 365 days divided by inventory turnover? a. Days sales in receivables b. Inventory turnover ratio c. Acid-test...

Answered: 1 week ago

Question

★★★★★
3. (10 points) In this question you will see that soft-SVM can be formulated as solving a regularized ERM rule, which uses a popular error function called hinge loss (see https:...

Answered: 1 week ago

Question

★★★★★
Suppose that Ivanhoe International Ltd. had the following records: 2025 2024 Ending inventory $48650 $27490 Cost of goods sold 222100 210890 What is Ivanhoe's average days in inventory for 2025?...

Answered: 1 week ago

Question

★★★★★
1 . If Custom Call Services does transition to a PTO policy, what are some things that Stan should consider including in the policy to address concerns about absenteeism ?

Answered: 1 week ago

Question

★★★★★
what is the work content and components of the project. It can be described by naming all the activities performed?

Answered: 1 week ago

Question

★★★★★
Gas mixtures. A mixture composed of CO and H2 is contained at 283 kPa. Calculate the partial pressure of the H in kPa in this mixture if the mole fraction of CO is 68 %. Provide the answer to three...

Answered: 1 week ago

Question

★★★★★
Did the event wind up costing the members any money? Thanks to the donations of local restaurants and supplies provided by the county sanitation department, the event cost the group absolutely...

Answered: 1 week ago

Question

★★★★★
1. Your chemistry professor assigned a full-semester group project and has asked you to take the lead in your group because chemistry is your best subject. When it comes down to assigning your tasks...

Answered: 1 week ago

Question

★★★★★
Consider three groups to which you belong. Is there a clearly established leader for each group? If so, what type of power does this leader have? Do you find certain types of power more ethical or...

Answered: 1 week ago

Previous Question Next Question