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Q1; as manager of portfolio your management asks to compute from following data in the table, beta for each individual assets, and return portfolio ,
Q1; as manager of portfolio your management asks to compute from following data in the table, beta for each individual assets, and return portfolio , then explain to management which better to invest in portfolio or in individual assets, show steps in calculation ? 10 points A B C D MARKET 2.00% 1.18% 0.01 2.29% 1.50% Mean-return Risk -standard deviation 8.21% 5.15% 4.44% 7.63% 4.81% 30% 5% 25% Weights Covariance correlation 40% 0.30% 0.06% 0.10% 0.25% A B D MARKET A 1 B 1 21.38% 31.65% 1 34.95% 22.49% D 1 51.34% 75.48% 35.97% 47.98% MARKET 22.71% 67.12% 1
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