Portfolio Assignment | Homework For You
May 28th, 2020
If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%.
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Portfolio Assignment | Homework For You
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A)
Portfolio | Expected Return |
Beta | ||||
A | 14 | % | 1.4 | |||
Market | 14 | % | 1.0 | |||
B)
Portfolio | Expected Return |
Standard Deviation |
||||
A | 17 | % | 14 | % | ||
Market | 12 | % | 22 | % | ||
C)
Portfolio | Expected Return |
Beta | ||||
A | 17 | % | 1.4 | |||
Market | 12 | % | 1.0 | |||
D)
Portfolio | Expected Return |
Beta | ||||
A | 21.2 | % | 1.8 | |||
Market | 14 | % | 1.0 | |||
Multiple Choice
- Option B
- Option A
- Option D
- Option C. Get Finance homework help today