Question
stock beta expected return total variance of return aapl 1.2 14 0.005 msft 0.7 8.4 0.0018 pep 0.5 7.3 0.008 (i). If the variance of
| stock | beta | expected return | total variance of return |
| aapl | 1.2 | 14 | 0.005 |
| msft | 0.7 | 8.4 | 0.0018 |
| pep | 0.5 | 7.3 | 0.008 |
(i). If the variance of the return on the market is 0.0012, find the nonsystematic variance for each stock. (ii). Calculate the variance of a portfolio with an allocation of 100 in AAPL, 300 in MSFT and 200 in PEP.
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Cases In Healthcare Finance
Authors: George H. Pink, Paula H. Song
7th Edition
1640553177, 978-1640553170
