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please solve in 50 mins i need all subparts please help. i will give thumbs up Question 4 (20 points) The following table presents data
please solve in 50 mins i need all subparts please help. i will give thumbs up
Question 4 (20 points) The following table presents data of two portfolios, traded in the market: Portfolio A Portfolio B Market portfolio Expected return Standard deviation Beta 14.5% 50% 1.25 7% 30% 0.5 ? 40% ? a. Calculate the expected return of the market portfolio and the risk-free rate. Answer: The expected return of the market portfolio is %_ The rf rate is % b. Which one of the two portfolios is efficient? Answer: The efficient portfolio is rf asset ? ? ? An investor has $100,000 to invest and wants to receive an expected return of 10%. c. How can she earn the target expected return? Answer: She will invest $ invest $ invest $ in portfolio A. in portfolio B. in risk free asset. d. Following c, what is the standard deviation of the portfolio? Answer: The standard deviation portfolio is %_ e. What is the total investment in the market portfolio? Answer: The total investment in the market portfolio is $_Step by Step Solution
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