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SVETLANKA909090 [29]
3 years ago
7

You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset: Portfolio RP

σP βP X 12.0 % 33 % 1.95 Y 11.0 28 1.25 Z 7.3 18 0.60 Market 11.4 23 1.00 Risk-free 6.8 0 0 Assume that the correlation of returns on Portfolio Y to returns on the market is 0.84. What is the percentage of Portfolio Y’s return that is driven by the market?
Business
1 answer:
Dmitrij [34]3 years ago
5 0

Answer:

0.7056 or 70.56%

Explanation:

As there is three portfolios, the market portfolio and the risk free asset are given

Plus the correlation of return on portfolio Y to return on the market is 0.84

So by considering the given information in the question, the percentage of portfolio Y return is

= Correlation of return on portfolio Y to return on the market ^ 2

= 0.84 ^ 2

= 0.7056 or 70.56%

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Answer:

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What are examples of explicit cost?A. the amount of money the owner could have made by investing in an alternative activity B. t
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Answer:

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3 years ago
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3 years ago
Crane Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face
xxTIMURxx [149]

Answer:

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Explanation:

Provided that zero coupon bonds are to be issued.

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Therefore, Value of bond today = $1,000 \times 0.283 = $283

3 0
3 years ago
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