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Business, 05.05.2020 04:05 landon6663

You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset: Portfolio RP σP βP X 12 % 29 % 1.25 Y 11 24 1.10 Z 8 14 0.75 Market 10 19 1.00 Risk-free 4 0 0 Assume that the correlation of returns on Portfolio Y to returns on the market is 0.75. What is the percentage of Portfolio Y’s return that is driven by the market?

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