QUESTION 9

In the table of the previous question, what does the standard deviation measure? How is it different from beta? Which is the one matters in the CAPM and why?

On compre on Status: QUESTION 8 4596 Your brother wants to invest in the stock market. Initially, he wanted to put all his "piggy bank money into one company, however you told him that it would be better to hold a portfolio of many different shares. He is quite stubborn and only wants to invest in his favorite 4 companies. He has decided the amount of wealth he is going to put into each and he has asked you to estimate the expected return on his proposed portfolio. You have collected the betas for all of his companies. See the information of the portfolio below: Company Total Value of shares Beta Standard deviation Adidas $800 1.7 Tesla $300 1.9 23% Wholefoods $200 1.3 69% GoSun 5700 88% In addition, you found the 10-yr government bond yield to be 5% p.a. and you estimate the market risk premium to be 74. What is the expecte return of your brother's portfolio? 0.4 QUESTION 9 In the table of the previous question, what does the standard deviation measure? How is it different from beta? Which is the one matters in the CAPM and why? TT T Arial 3 (12pt) - 3 Chek Sane and Submit to save and submit. Click Sale All Answers to save all ansur