Question
Given the following data: Stock Weight Return Standard Deviation beta A 0.60 10% 20% 0.80 B 0.40 20 30 1.20 Calculate: a. The portfolio return.
Given the following data:
Stock Weight Return Standard Deviation beta
A 0.60 10% 20% 0.80
B 0.40 20 30 1.20
Calculate:
a. The portfolio return.
b. The portfolio total risk for rA,B = -1.0, -0.3, 0.0, 0.3, and 1.0.
c. Given that Rf = 8% and Rm = 12%, is the portfolio correctly priced? Explain.
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
