Question 5 Answer saved Assume that the market is in equilibrium and you are given the following data on securities A and B and the market portfolio Marked out of 2 F Flag question Security Expected return Cov. With A Cov. With Cov. With M A 10% 0.04 B 6.23% 0.06 0.30 Market Portfolio 7% ???? 0.05 0.09 The risk-free rate is 3% In equilibrium, what is the covariance of return of security A with the market portfolio implied by the above information? Select one: . a. 0.1575 O b. 0.1875 O c.0.0875 O d. 0.1125 Clear my choice Question 6 Answer saved Marked out of 2 Based on the given information in the previous question, assume that you have OMR10,000 available to invest. If you sell short OMR6,000 of security A, and invest all the available funds in security B, what is the beta of stock A and B, respectively? Flag question Select one: O a. A0.97, B=3.33 . b. A=1.75, B=0.56 O cA=1.25, B =0.71 O d. A=2.08, B=0.78 Question 7 Answer saved Based on the previous question, assume that you have OMR10,000 available to invest. If you sell short OMR6,000 of security A, and invest all the available funds in security B, what is the portfolio's beta? Marked out of 2 Pag question Select one: O a.-1.27 b. 0.15 Oc1.27 d. -0.15 Clear my choice Question 8 Based on the information provided in the previous question suppose you can form any portfolio from stocks A and B, with short selling and no leverage. You want expected returns of 15%. What will the standard deviation of your portfolio be closest to? Answer saved Marked out of P Flag question Select one: O a. 0.0754 Ob.7.54% O c 1.42 . d. 27.5% Clear my choice Question 5 Answer saved Assume that the market is in equilibrium and you are given the following data on securities A and B and the market portfolio Marked out of 2 F Flag question Security Expected return Cov. With A Cov. With Cov. With M A 10% 0.04 B 6.23% 0.06 0.30 Market Portfolio 7% ???? 0.05 0.09 The risk-free rate is 3% In equilibrium, what is the covariance of return of security A with the market portfolio implied by the above information? Select one: . a. 0.1575 O b. 0.1875 O c.0.0875 O d. 0.1125 Clear my choice Question 6 Answer saved Marked out of 2 Based on the given information in the previous question, assume that you have OMR10,000 available to invest. If you sell short OMR6,000 of security A, and invest all the available funds in security B, what is the beta of stock A and B, respectively? Flag question Select one: O a. A0.97, B=3.33 . b. A=1.75, B=0.56 O cA=1.25, B =0.71 O d. A=2.08, B=0.78 Question 7 Answer saved Based on the previous question, assume that you have OMR10,000 available to invest. If you sell short OMR6,000 of security A, and invest all the available funds in security B, what is the portfolio's beta? Marked out of 2 Pag question Select one: O a.-1.27 b. 0.15 Oc1.27 d. -0.15 Clear my choice Question 8 Based on the information provided in the previous question suppose you can form any portfolio from stocks A and B, with short selling and no leverage. You want expected returns of 15%. What will the standard deviation of your portfolio be closest to? Answer saved Marked out of P Flag question Select one: O a. 0.0754 Ob.7.54% O c 1.42 . d. 27.5% Clear my choice
