Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

table [ [ , Security A , Security B , Market ] , [ Security A , 0 . 0 0 3 9 0

\table[[,Security A,Security B,Market],[Security A,0.00390625,0.00221875,0.00393250],[Security B,0.00221875,0.00504100,0.00514250],[Market,0.00393250,0.00514250,0.00302500]]
For the coming year, the risk-free rate is 2 perfect, and the market risk premium is 5 percent. Now, assume that you put 25 percent of your money into Sefurity A and the rest of your money into Security B. What is the beta of the resulting portfolio?
1.66
1.34
1.46
1.54
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

The Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

7th Edition

0321122356, 978-0321122353

More Books

Students also viewed these Finance questions

Question

Write short notes on Interviews.

Answered: 1 week ago

Question

Describe how language reflects, builds on, and determines context?

Answered: 1 week ago