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Question 3 [30 mars] 3.1 Suppose you hold the positions in the table below...What is the beta of your portfolio? If you expect the market

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Question 3 [30 mars] 3.1 Suppose you hold the positions in the table below...What is the beta of your portfolio? If you expect the market to earn 10 percent and the risk-free rate is 2.5 percent, what is the required return of the portfolio? Price Shares Beta eBay Inc. $40.80 100 3.8 Walmart Inc 30.10 150 1.2 57.40 75 0.4 Coles Supermarkets Australia Pty Ltd Woolworths 23.80 200 0.5 3.1 Type your answer here. [15 marks] HEB i A X X S2- EE 66 X 3.2 In Figure 1, explain why the dots appear to be almost randomly scattered? Figure 1: Average Returns and Standard deviation for 10 Shares 1993-2010 The figure indicates that a politive relationship ni bureen the average return offered by an dem and the standard deviation of return for that des Average annual retorn 137 30% 25% Intel 20% 15% Exeon GE ADM 10% - P&6 Merck Wendy's Cole Walmart Amer. Al 5% 0% 0.0% 10.0% 50.0% 60.0% 20.0% 30.0% 40.0% Standard deviation systematic+unsystematic risk)

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