For questions 1-3 use the information from the following table
$\begin{array} { l c c l }
\text { Security } & \text { Return } & \text { Standard Deviation } & \text { Beta } \
\text { A } & 16 \% & 20 \% & 1.2 \
\text { B } & 12 \% & 25 \% & 0.8 \
\text { Risk-free asset } & 4 \% & 2 ? ? & \text { ??? }
\end{array}$
-What is the portfolio expected return and the portfolio beta if
you invest 35% in A,45% in B and 20% in the risk-free asset?

Question

For questions 1-3 use the information from the following table
$\begin{array} { l c c l } 
\text { Security } & \text { Return } & \text { Standard Deviation } & \text { Beta } \
\text { A } & 16 \% & 20 \% & 1.2 \
\text { B } & 12 \% & 25 \% & 0.8 \
\text { Risk-free asset } & 4 \% & 2 ? ? & \text { ??? }
\end{array}$
-What is the portfolio expected return and the portfolio beta if
you invest 35% in A,45% in B and 20% in the risk-free asset?

Quizplus · Accepted Answer

The Answer of 
For questions 1-3 use the information from the following table
$\begin{array} { l c c l } 
\text { Security } & \text { Return } & \text { Standard Deviation } & \text { Beta } \
\text { A } & 16 \% & 20 \% & 1.2 \
\text { B } & 12 \% & 25 \% & 0.8 \
\text { Risk-free asset } & 4 \% & 2 ? ? & \text { ??? }
\end{array}$
-What is the portfolio expected return and the portfolio beta if
you invest 35% in A,45% in B and 20% in the risk-free asset?

For Questions 1-3 Use the Information from the Following Table