A risky equity portfolio generates returns that have a covariance with the market portfolio of 0.085. The market portfol

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

A risky equity portfolio generates returns that have a covariance with the market portfolio of 0.085. The market portfol

Post by answerhappygod »

A risky equity portfolio generates returns that have a
covariance with the market portfolio of 0.085. The market portfolio
is expected to generate a return of 0.085 per month with a standard
deviation of returns of 0.25. The T-Bills rate is currently 0.005
per month. According to the CAPM, what is the expected monthly
return of the risky portfolio?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”