Question
The distribution of returns for share P and the market portfolio M is given below: Probability Return (%) P M 0.3 10% 15% 0.2 20%
The distribution of returns for share P and the market portfolio M is given below:
| Probability | Return (%) | |
| P | M | |
| 0.3 | 10% | 15% |
| 0.2 | 20% | 25% |
| 0.2 | -10% | -5% |
| 0.3 | 30% | 20% |
You are required to calculate the expected return and risk of security P and the market portfolio.
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The Investors Guidebook To Fixed Income Investments
Authors: Stuart R. Veale
1st Edition
0735205310, 978-0735205314
