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Use the following information to answer the question(s) below. Firm Portfolio Weight Volatility Correlation w/ Market Portfolio Taggart Transcontinental 0.25 14% 0.7 Wyatt Oil 0.35
Use the following information to answer the question(s) below.
Firm | Portfolio Weight | Volatility | Correlation w/ Market Portfolio |
Taggart Transcontinental | 0.25 | 14% | 0.7 |
Wyatt Oil | 0.35 | 18% | 0.6 |
Rearden Metal | 0.40 | 15% | 0.5 |
The volatility of the market portfolio is 10%, the expected return on the market is 12%, and the risk-free rate of interest is 4%. The beta for the portfolio of the three stocks is closest to:
1.02. | ||
0.92. | ||
1.00. | ||
0.94. |
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