Correlation Matrix Securities Expected Return E(R_i) Standard Deviation _i Google Microsoft Apple Market Portfolio Google 19.2% 36% 1.0 0.7 0.6 0.5 Microsoft 21.9% 35% 1.0 0.5 0.6 Apple 12.0% 25% 1.0 0.4 Market Portfolio 12.0% 10% 1.0 The risk-free interest rate is 3%.<\/p>
Please Answer the below<\/p>
Given the correlation matrix, what is the covariance between Google and the Market? (2 marks)<\/p>
Given the correlation matrix, what is the beta of Microsoft? (2 marks) <\/p>
Show that Microsoft is priced according to the CAPM. (2 marks)<\/p>
What is the expected return and volatility of a portfolio that consists of a long position of $10,000 in Microsoft and a short position of $2,000 in Apple? (4 marks)<\/p>", "transcribed_text": "", "related_book": { "title": null, "isbn": null, "edition": null, "authors": null, "cover_image": null, "uri": null, "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-16 00:09:26", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/theory-of-probability\/9-a-group-of-n-customers-moves-around-among-two-2015116", "description": "9. A group of n customers moves around among two servers. Upon completion of service, the served customer then joins the queue (or enters service if the server is free) at the other server. All...", "stars": 0 }, { "url": "\/a-job-cost-sheet-of-nilson-company-is-given-below", "description": "A job cost sheet of Nilson Company is given below. Instructions(a) Answer the following questions.(1) What are the source documents for direct materials, direct labor, and manufacturing overhead...", "stars": 3 }, { "url": "\/study-help\/questions\/correlation-matrix-securities-expected-return-eri-standard-deviation-i-google-11107925", "description": "Correlation Matrix Securities Expected Return E(R_i) Standard Deviation _i Google Microsoft Apple Market Portfolio Google 19.2% 36% 1.0 0.7 0.6 0.5 Microsoft 21.9% 35% 1.0 0.5 0.6 Apple 12.0% 25% 1.0...", "stars": 3 }, { "url": "\/study-help\/questions\/kyle-a-single-taxparyer-worked-as-a-freelance-software-engineer-10452618", "description": "Kyle, a single taxparyer, worked as a freelance software engineer for the first three months of 2023. During that time, he earned $70,000 of self-employment income. On April 1,2023, Kyle took a job...", "stars": 3 }, { "url": "\/study-help\/questions\/final-assignment-to-be-completed-by-the-student-1-briefly-4647591", "description": "Final Assignment (To be completed by the student) 1. Briefly describe the ISD process, compare and outline the components. (200 words - 4 marks) Given the Needs Analysis provided by the company to...", "stars": 3 }, { "url": "\/study-help\/questions\/an-automated-swinging-security-light-hanging-from-the-corner-of-946068", "description": "An automated, swinging security light, hanging from the corner of a 35 ft tall building, is lighting the ground in front of the building. The angle 0 (see image below) is increasing at a rate of 0.6...", "stars": 3 }, { "url": "\/study-help\/questions\/a-department-has-three-machines-the-following-figures-indicate-the-917386", "description": "A department has three machines. The following figures indicate the departmental expenses for the most recent month Depreciation of machinery Depreciation of building Repairs to machinery Insurance...", "stars": 3 }, { "url": "\/study-help\/questions\/help-in-this-module-you-will-plan-a-diving-trip-4655965", "description": "In this module, you will plan a diving trip. You will need to know estimates of the pressure changes that you will experience. For example, if you estimate reaching depths of 200 ft (61.0 m). The...", "stars": 3 }, { "url": "\/study-help\/questions\/please-solve-with-complete-stepbystep-solutions-thanks-problem-3-given-4682221", "description": "PROBLEM 3 Given Diagram 3.1, answer Questions 3.1, 3.2 and 3.3 Diagram 3.1 Fa = 2,120 N Ff = 103 N 2,200 kg Question 3.1 What is the resultant force acting on the object? Your answer Question 3.2...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/budget-for-passport-automation-systems-we-dont-have-any-value-11107924", "next": "\/study-help\/questions\/required-information-the-following-information-applies-to-the-questions-displayed-11107926" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Correlation Matrix Securities Expected Return E(R_i) Standard Deviation _i Google Microsoft Apple", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/correlation-matrix-securities-expected-return-eri-standard-deviation-i-google-11107925" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }1" } }