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please assist in solving this question. Poon Section 2 instructions. There are s ections in this woh 25 Answer all questions. Show your W e
please assist in solving this question.
Poon Section 2 instructions. There are s ections in this woh 25 Answer all questions. Show your W e binar marks This 1. Factor models 1 (5 marks) and are siven by the following one-factor models 0.1 +0.27 + A -0.2 DAT The joint distribution off. c. and is given by 11-:) lu a. Fill out the table below (3 marks): Mean of ra Mean of ra Variance of ra Variance of rs Covariance of ra and 13 000 v 0.2 o. b. State which component of ra represents diversifiable risk, and explain why it is diversifiable (2 marks). . Since the ebselon is different, it represents diversifiable risk. Poon Section 2 instructions. There are s ections in this woh 25 Answer all questions. Show your W e binar marks This 1. Factor models 1 (5 marks) and are siven by the following one-factor models 0.1 +0.27 + A -0.2 DAT The joint distribution off. c. and is given by 11-:) lu a. Fill out the table below (3 marks): Mean of ra Mean of ra Variance of ra Variance of rs Covariance of ra and 13 000 v 0.2 o. b. State which component of ra represents diversifiable risk, and explain why it is diversifiable (2 marks). . Since the ebselon is different, it represents diversifiable riskStep by Step Solution
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