Question
You are considering an investment of $1,000 in two cybersecurity stocks, Cybersecurity Lions and Cybersecurity Wolves. The risk-free rate is 4.3% and the variance
You are considering an investment of $1,000 in two cybersecurity stocks, Cybersecurity Lions and Cybersecurity Wolves. The risk-free rate is 4.3% and the variance of the market portfolio is 0.04. but unfortunately some essential details are missing: | ||||||
CS Lions | CS Wolves | |||||
Expected Return | 8.31% | ? | ||||
Variance | 0.044 | 0.136 | ||||
Covariance with market portfolio | 0.026 | 0.053 | ||||
Beta | 0.65 | ? | ||||
(i) What is the beta of Cybersecurity Wolves? | ||||||
(ii) What is the expected return on the market portfolio? |
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