1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sleet_krkn [62]
1 year ago
9

Here are some characteristics of two portfolios, the market index, and the risk-free asset. Expected Return Beta Standard Deviat

ion Portfolio A 11% 0.8 10% Portfolio B 14% 1.5 31% Market index 12% 1 20% T-bills 6% 0 0% Required: a-1. Calculate the return predicted by CAPM for a portfolio with a beta of 0.8. (Round your answer to 1 decimal place.) a-2. Calculate the return predicted by CAPM for a portfolio with a beta of 1.5. b. If instead you could invest only in bills and one of these portfolios, which would you choose
Business
1 answer:
SVETLANKA909090 [29]1 year ago
3 0

A. 1. Return predicted by capital asset pricing model for portfolio of .8

= (Risk free return+(Market return- risk free rate)B

B= Beta.

=(.06+(-12-06),8)

=(.06+,048)

= 10.80%.

A.2. Capital Asset pricing model return for portfolio of Beta of 1.5

=(.06+(-12-.06)1.5)

= 15.00%.

A.3. PORTFOLIO A- Portfolio A will be selected for investment because expected return is higher than required return and the portfolio is currently undervalued.

To know more portfolio visit:

brainly.com/question/17165367

#SPJ4

You might be interested in
Henry and claudia can claim alyssa for which tax benefits
34kurt
Considering that Alyssa is their young daughter, United States has an  astounding number of tax credits and deductions that are geared towards taxpayers with children, they could claim: Credits, Deductions, exemption, Education Benefits, Education Deductions, and Education Credits, among others.
6 0
2 years ago
Surveys are an especially effective source of support for topics related to the attitudes, values, and beliefs of the people A.
Elena L [17]

Answer:

Option "A" is the correct answer to the following statement.

Explanation:

In the modern era, everyone relates himself with surveys reports easily, If a speaker uses survey reports during his lectures every individual attracts numerical provided data. this will create a suitable environment for the speaker.

In an immediate environment, the speaker tries to attract individuals by providing them survey reports which authorized his opinion.

8 0
3 years ago
An Uber driver faces costs for driving that include sunk costs like insurance that contribute to the average cost per mile of $.
crimeas [40]

Answer: sunk costs don't increase as driving increases.

Explanation: sunk costs are irrelevant costs because they have already occured in the past and cannot be avoided. Sunk costs thus do not differ between alternatives, and are unavoidable. The calculation for insurance and other sunk costs are likely not based on the amount of rides the Uber picks up, but rather calculated at a constant rate. So regardless of whether or not the rider pays more or less than the $.50 on the insurance, this will not have any effect on the insurance that is constant and has likely already been paid out.

4 0
2 years ago
Which of the following phrases is an example of structural que ?
Inessa05 [86]

Answer:

excuse me but where is the phrase?

7 0
2 years ago
If a fishing boat owner brings 10,000 fish to market and the market price is $7 per fish, she will have $70,000 in total revenue
Alex777 [14]

Answer:

$10,000

Explanation:

Given that

Total revenue is $70,000

Total fixed cost is $40,000

And, the total variable cost is $10,000

According to the given situation, the computation of profit is shown below:-

Profit = Total Revenue - Total Fixed cost - Total variable cost

= $70,000 - (10,000 × $4) - 10,000

= $70,000 - 40,000 - 10,000

= $10,000

Therefore for computing the profit we simply applied the above formula.

6 0
3 years ago
Other questions:
  • The cincinnati history museum displays materials and related aspects of the history of cincinnati and the surrounding region. th
    13·1 answer
  • Sharing the financial consequences associated with risk in the insurance industry is sometimes called
    12·1 answer
  • Wilson Co. has three segments -- Tennis, Golf, and Fishing. The Tennis segment is currently producing 2,000 units annually. The
    15·1 answer
  • What additional proposal is made by a very worthy person a true lover of his country?
    12·2 answers
  • A woman earns 15% more than her husband. Together they make $58,695 per year. What is the husband's annual salary?
    5·1 answer
  • A rectangular storage container with an open top has a volume of 14 m3. The length of its base is twice its width. Material for
    13·1 answer
  • Brett, the manager at Warson’s Diner, plans to promote Keisha, one of the waitresses, to the position of an assistant manager. H
    12·1 answer
  • The image shows a bar graph.
    7·2 answers
  • On January 1, 2021, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,
    5·1 answer
  • Sergio has decided to diversify his investments in the following way: $4,000 in an account earning 3. 2% simple interest $4,000
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!