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Please check if I answer correctly: Question 7 (2 points) What is the correlation coefficient between returns on any efficient portfolio and returns on the
Please check if I answer correctly:
Question 7 (2 points) What is the correlation coefficient between returns on any efficient portfolio and returns on the market portfolio in CAPM? O0.5 Oo O-1 O-0.5Question 8 (5 points) Saved Suppose that the CAPM holds. What is the standard deviation of the efficient portfolio that pays 30% expected return if the expected return on the market portfolio is 15%, the risk-free rate is 5% and the standard deviation of returns on the market portfolio is 20%. 30% O 15% 50% C 45% 20%Question 9 (3 points) Saved Suppose that the CAPM holds and the expected return on the market portfolio is 10%, the risk-free rate is 4%, the standard deviation of the market portfolio is 16%. What is the expected return on the efficient portfolio with 20% standard deviation? O 12.5% O 15.5% 20% O 10% O 11.5%Step by Step Solution
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