Homework Assignment #3 You have researched three securities you would like to add to your passive investment in an S&P index. You have projected E(R), S and beta for the three securities. Total Risk (S) 18% Expected Return 13% Required Return (K) Beta (B) Idiosyncratic risk (Se) Symbol DPZ Jensen a 0.8 TECH 12% 17% 1.2 AKAM 14% 20% 1.1 S&P 12% 9% 2% RE a. Fill in the missing information in the table b. Create an active portfolio invested in the three securities (find the weights for each security) C. Calculate your Active portfolio's alpha, beta, total risk (S) and idiosyncratic risk (Se). d. Calculate your allocation (%) to the active portfolio (WA) e. Calculate the E(R) and 5 of your total investment (passive + active) 1 of 1 134 of 137 words IE English (United States) O Focus + 138% 606 16,822 Homework Assignment #3 You have researched three securities you would like to add to your passive investment in an S&P index. You have projected E(R), S and beta for the three securities. Total Risk (S) 18% Expected Return 13% Required Return (K) Beta (B) Idiosyncratic risk (Se) Symbol DPZ Jensen a 0.8 TECH 12% 17% 1.2 AKAM 14% 20% 1.1 S&P 12% 9% 2% RE a. Fill in the missing information in the table b. Create an active portfolio invested in the three securities (find the weights for each security) C. Calculate your Active portfolio's alpha, beta, total risk (S) and idiosyncratic risk (Se). d. Calculate your allocation (%) to the active portfolio (WA) e. Calculate the E(R) and 5 of your total investment (passive + active) 1 of 1 134 of 137 words IE English (United States) O Focus + 138% 606 16,822