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Please answer all questions as no more asks remain! Thumbs up!! The CFO of MediSearch plc believes that investing into a project which will develop
Please answer all questions as no more asks remain! Thumbs up!!
The CFO of MediSearch plc believes that investing into a project which will develop a new drug for fighting the flu virus, promises a long-term annual return of 13%. The expected return of the market index is RM = 17.1%, the volatility of the market index is O M = 10.2%, and the risk-free asset earns Rf 3.2%. The CFO has studied similar projects of other companies and believes that the covariance between the returns of this project and the returns of the market is op, M = 0.0066 (in decimal form). This question has 3 parts (.e.. you will be clicking "Verity" 3 times). What is the beta of the project? Enter your answer founded to two decimal places. Number Lucas builds a portfolio by Investing in two stocks only: Microsoft (MSFT) and Motorola (MSI). According to the CAPM, the expected risk premium (l... the expected return minus the risk-free rate) of MSFT is 13.66% and the expected risk premium of MSI is 5%. The beta of MSFT is equal to 1.17. It Lucas puts 68% af his money in MSFT stock and 32% in MSI stock, what is the approximate beta of his portfolio? Number (Please round your answer with two decimals) Jar Jar forms an aggressive growth portfolio by investing 21% of his savings in GM stock, 24% in Nissan stock, 21% in Subaru stock, 14% in an Index fund, and the last 20% is allocated on a bond fund. Assume for simplicity that the index fund is a good proxy to the market portfolio and has a beta equal to 1, whereas the bond fund is a good proxy to the riskless asset. The beta of GM stock is 1.19, the beta of Nissan is 1.53, and the beta of Subaru is 1.9. If the expected return of the market index is 14% and the risk-free asset yields 3%, what are the beta and the expected return of Jar Jar's portfolio? Give your answer rounded to two decimal places This question has 2 parts (.e. you will be clicking "Verity" twice). What is the beta of the portfolio? = Number Step by Step Solution
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