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You are given the following information about possible investments: Market Standard Correlation Deviation with Market Value $5 trillion 15% $2 trillion 22.5% 15% $2.5

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You are given the following information about possible investments: Market Standard Correlation Deviation with Market Value $5 trillion 15% $2 trillion 22.5% 15% $2.5 trillion Asset Mean Return Real Estate 8% Growth Stocks 12% Antiques 15% 0.5 1.0 0.25 7.a What are the equal-weighted and value-weighted mean returns on portfolios, which include all three assets? 7.b If the market standard deviation is 15%, what are the CAPM betas of each of these assets?

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4a Answer Equal weighted mean return on portfolio 13 8 13 12 13 15 267 4 5 1167 ... blur-text-image

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