Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 10, 2024

Suppose the risk-free rate is 4.2 percent and the market portfolio has an expected return of 10.9 percent. The market portfolio has a variance of

Suppose the risk-free rate is 4.2 percent and the market portfolio has an expected return of 10.9 percent. The market portfolio has a variance of .0382. Portfolio Z has a correlation coefficient with the market of .28 and a variance of .3285.

According to the capital asset pricing model, what is the expected return on Portfolio Z?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Before a major test, do a free write on these prompts What exactly will be on the test? What kinds of questions will be asked (multiplechoice, essay, etc.)? How well will I do? What do I need to...

Answered: 1 week ago

Question

★★★★★

Two instructors announced that they "grade on the curve," that is, give a fixed percentage of each of the various letter grades to each of their classes. Their curves are as follows: If a random...

Answered: 1 week ago

Question

★★★★★

( a ) Determine the pressure drop in c m of H 2 O at the onset of fluidization when catalyst particle having a density of 1 . 8 g c c are fluidized with liquid petroleum fraction having a density of...

Answered: 1 week ago

Question

★★★★★

What is the quick ratio for 2017 Windswept, Indu 2017 Income Statement Net sales $10, Cost of goods sold a, 160 Depreciation 505 Earnings before interest and taxes 1,425 Interest paid Taxable income...

Answered: 1 week ago

Question

★★★★★

An object that has a small aperture is placed between a light source and a screen, as shown in Figure 33.4. Which parts of the screen are in the shadow? Data from Figure 33.4 object screen (edge on)...

Answered: 1 week ago

Question

★★★★★

Two balls of identical size (ball 1 made up of nylon and ball 2 made up of rubber) were rubbed against each other so that they carry a uniformly distributed charge of magnitude $0.25 \mathrm{nC}$....

Answered: 1 week ago

Question

★★★★★

PH Ltd. furnishes the following information relating to budgeted sales and actual sales for April. Calculate the following variances: (1) Sales quantity variance, (2) Sales mix variance, (3) Sales...

Answered: 1 week ago

Question

★★★★★

Following is a sample from a population with median m. Use the sign test to test H0: m = 20 versus H1: m > 20. a. What is the value of the test statistic? b. Is H0 rejected at the = 0.05 level? c....

Answered: 1 week ago

Question

★★★★★

A famine in one nation created a huge influx of migrants to cross the border into a neighboring country. Many international aid organizations arrived at the migrant camps to provide food, water, and...

Answered: 1 week ago

Previous Question Next Question