Question
You are given the following information in the table below for security A, B and C. The market portfolio has a standard deviation of return
- You are given the following information in the table below for security A, B and C. The market portfolio has a standard deviation of return at 18%.
| Security i | i | E(Ri) | (ei) |
| A | 0.9 | 6% | 22% |
| B | 0.6 | 7% | 8.5% |
| C | 1.7 | 9% | 18% |
Calculate the systematic risk for security A, B and C respectively.
Interpret the ei and (ei)
Which security has the highest Treynor ratio?
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Raising Venture Capital
Authors: Rupert Pearce, Simon Barnes
1st Edition
0470027576, 978-0470027578
