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You receive a flier from a lithium commodity broker. It shows that historical returns on lithium have been 30% per year on wege for the
You receive a flier from a lithium commodity broker. It shows that historical returns on lithium have been 30% per year on wege for the last year. The covariance of lithium with the market is 03, the standard deviation of the market is 20. The risk-free rate is 1.046, the expecto return of the market is How would you create a portfolio with the same systematic risk that is fully diversified (i.c., using the CMLY? Buy a set of stocks with a 4.14 beta Buy a set of stocks with a 0.75 beta Buy a set of stocks with a 0.5 beta Put 75% of your money into a market index and the remaining 25 into treasury bills QUESTION 18 UStreasury strips are trading with the following yields: Maturity Yield 1-year 24 2 year 1.5% 3-year 1.29 If the yield curve does not change over the next yeur, which bond gives you the highest one year holding period return? The 1-year The 2-year The 3-year They give the same returns insufficient information to judge
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