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Q 6 : a passive investor divides in investable funds between the risk free asset and the index that mimics the market portfolio such that

Q6: a passive investor divides in investable funds between the risk free asset and the index that mimics the market portfolio such that 38% of her funds are in the risk free assets and the rest in the market index.The risks free rate is 2.6%, and the expected return on the market index is 8.2%. The variance of the market is16(0.001600) if you prefer to use decimal returns). Calculate the standard deviation of the inventors portfolio (answers choices:2.48%,16,4%,1.52%)Q7 The beta of the risk free asset should always be (answers choices: 1,0, equal to average Beta of all assets, it depends on the state of economy Q8 what is the risk premium of an asset A whose Beta is 1.2 if the market risk premium is 12% and the risk free rate is 4.%?( answers: 14.40%9.60%13.60%18.40%) Q9: the covariant between the market and itself is always ( answers: 1,0, anywhere between-1+1, the variance of the market)

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