Question
HERE ARE PROBLEM 1 AND 2. 1). Stock A can provide a return of either 10% with 30 percent probability, or -5% with 70 percent
HERE ARE PROBLEM 1 AND 2.
1). Stock A can provide a return of either 10% with 30 percent probability, or -5% with 70 percent probability. What is its standard deviation?
2). A portfolio contains four assets:
Asset 1 has a beta of 0.8 and comprises 30% of the portfolio.
Asset 2 has a beta of 1.1 and comprises 30% of the portfolio.
Asset 3 has a beta of 1.5 and comprises 20% of the portfolio.
Asset 4 has a beta of 1.6 and comprises the remaining 20% of the portfolio.
If the riskless rate is expected to be 3% and the market risk premium is 6%, what is the beta of the portfolio?
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The Ten Commandments To A Financial Healing
Authors: Ms. Kemberley J Washington
1st Edition
1499607261, 978-1499607260
