Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

Consider a market with only the following three risky assets:

 

  Expected Return % per month

 Risk %

 Covariance with market

 Asset 1

 2.03

 2

 1.12

 Asset 2

 1.79

 1

 0.90

 Asset 3

 1.49

 1

 0.62

 Market Portfolio

 

 0.92

 

    
a) Consider the market portfolio comprised of 4% invested in Asset 1, 76% invested in Asset 2, and 20% invested in Asset 3. What is the expected return of this portfolio?
b) What are the betas of the three risky assets?
c) Suppose the riskless rate of interest is 0.8% (8/10ths of one percent per month). Are these three securities priced correctly?
d) What is the beta of the market portfolio calculated as a weighted average of the betas of its components?

 

"Get 15%discount on your first 3 orderswith us"
Use the following coupon
"FIRST15"

testimonials icon
  IntroductionJessica E. Smith has received psychological evaluation at different times in her life. This has been...
testimonials icon
MANAGEMENT OF URBAN AREASRain Garden conceptRain gardens, also termed as bio-retention systems serves the purpose of controlling andfiltering runoffs...
testimonials icon
Although this is only a draft, you should try and get as close to this decription as possible.  Have a paper that is mainly done will allow you to...
testimonials icon
Use your textbook and the  University online library to find one recent success and one recent failure in international marketing. Write an articl...
testimonials icon
There is a message from the Prof. in the attachment.Find the requirements in the attachment....
testimonials icon
Surname 1Students NameTutors NameCourseDateSurname 2The Gottman Method.The post has helped me discover that this method was not only initiated theore...
testimonials icon
This project requires you to complete an exercise in business process mapping.You will use the following scenario for your assignment:...
testimonials icon
Mr. D. is 47 years old and was diagnosed with colon cancer 2 years ago. He had not gone to the doctor until he was in severe pain. Mr. D. does not...
testimonials icon
Case Study 10: An Anti-Nepotism Policy, Page 419 (Also review the information located under the Case Study page this week.)Your entire submi...
testimonials icon
Groups of students will create and offer two MS PowerPoint presentation summarizing the main points of one of the readings for this course along wi...
testimonials icon
Explain which web security threats are most prevalent, the hazards they present, and how these threats are exploiting holes in current security...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
$65
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price
$65