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In the table of the previous question, what does the standard deviation measure? How is it different from beta? Which is the one matters in

In the table of the previous question, what does the standard deviation measure? How is it different from beta? Which is the one matters in the CAPM and why?

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LIONS Final Evam Take Test FIN Got Homework Your brother w Xander is 26 Y in the root Remaining Time: 05 minutes, 34 seconds. Question Completion Status: QUESTIONS $400 Your brother wants to invest in the stock market. Initially, he wanted to put all his "piggy bank money into one company, however you told him that it would be better to hold a portfolio of many different shares. He is quite stubborn and only wants to invest in his favorite 4 companies. He has decided the amount of wealth he is going to put into each, and he has asked you to estimate the expected return on his proposed portfolio. You have collected the betas for all of his companies. See the information of the portfolio below. Company Total Value of shares Beta Standard deviation Adidas 2 4596 Tesla $200 1.2 23% Wholefoods $400 1.7 69% GoSun $400 1.4 8896 In addition, you found the 10-yr government bond yield to be 5% p.a. and you estimate the market risk premium to be 79. What is the expected return of your brother's portfolio? 16.40000% QUESTION 9 In the table of the previous question, what does the standard deviation measure? How is it different from beta? Which is the one matters in the CAPM and why? 1 34 Arial 3 (120) TE Save All Answers Click Save and Submit to save and submit. Click Save All Answers to see all answers DO A WPXO 20

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