subject
Business, 12.03.2020 18:53 ranmmm

Consider a world in which there are only two risky assets, A and B, and a risk-free asset F. The two risky assets are in equal supply in the market; that is, the market portfolio M = 1/2 (A + B). The following information is known:

r_F = 0.10, σ_A² = 0.04, σ_ΑΒΞ = 0.01, σ_B² = 0.02, ř_M = 0.18.

(a) Find a general expression (without substituting values) for σ_M², ß_A, β_Β.
(b) According to the CAPM, what are the numerical values for ř_A and ř_B.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 17:40
Steffi is reviewing various licenses and their uses. match the licenses to their respective uses.
Answers: 3
question
Business, 21.06.2019 21:00
Jameson manages a well-known cell phone company. this company has been voted as having the best cell-phone service. consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. jameson knows that the company's product far surpasses that of the competition. one thing has been bothering him, though. in order to put so many resources into ensuring the best service, jameson has cut back on employees at the firm's customer call center. recently, consumers have begun complaining about long wait times when they call in with a problem or concern. although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. jameson does not understand why consumers are getting so upset. he believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "after all," he says, "they can't have it all. if i invest more in customer service, that means less investment on ensuring the quality of our product offering."refer to scenario. jameson has asked you, a marketing consultant, to give him advice. he cannot understand how a cell-phone company with the best product offering in the cell-phone service industry could get such low satisfaction ratings simply because the customer service is not up to par. you suggest that jameson has a narrowly defined view of the company's product offering. you tell jameson that successful marketers should define their products as what they
Answers: 2
question
Business, 21.06.2019 21:30
Unrecorded depreciation on the trucks at the end of the year is $40,000. the total amount of accrued interest expense at year-end is $6,000. the cost of unused office supplies still available at year-end is $2,000. 1. use the above information about the company’s adjustments to complete a 10-column work sheet. 2a. prepare the year-end closing entries for dylan delivery company as of december 31, 2017. 2b. determine the capital amount to be reported on the december 31, 2017 balance sheet.
Answers: 1
question
Business, 22.06.2019 06:20
At a small store, a customer enters the front door on average every 8 minutes. a prior study indicated that the time between customers entering the front door during weekdays follows an exponential distribution. what is the probability that the time between customers entering the store on a weekday will be less than or equal to 7? select one: a. 62 b. 43 c. 1/8 d. 7/8 e. 58
Answers: 1
You know the right answer?
Consider a world in which there are only two risky assets, A and B, and a risk-free asset F. The two...
Questions
question
Mathematics, 25.06.2019 00:00
question
Mathematics, 25.06.2019 00:00
question
Biology, 25.06.2019 00:00
question
Mathematics, 25.06.2019 00:00
Questions on the website: 13722367