QUESTION 62

1. You invest $100 in the market portfolio with an expected return of 12% and a standard deviation of 15%, and a T-bill that pays 5%. If you desire to form a portfolio with an expected return of 10%, what percentages of your money must you invest in the market portfolio?

45.3%

65.5%

71.4%

83.5%

85.24%

1 points

QUESTION 63

1. The market portfolio has an expected return of 12% and a standard deviation of 20 %. The standard deviation of ABC Company's stock is 40% and its correlation coefficient with the market portfolio is 0.6.What is the beta of ABC's stock?

0.75

0.9

0.95

1.0

1.2