Portfolio Risk Assignment | Homework For You
June 8th, 2020
Question 1 You are analysing Yachi Industries. It has a beta of 1.2. The expected return on a market portfolio is 10%, and the risk free rate is 4%.
a. What is the expected return of Yachi? (5’)
b. If you want to diversify your investment risk, so you decide to invest 60% of your money in Yachi, and the rest of your money in a risk-free government bond. If you know the standard deviation of Yachi is 10%, what is your portfolio risk measured by standard deviation? (10’) Get Finance homework help today