(Answered) You are going to invest 20000 in a portfolio consisting of

Statistics

You are going to invest $20,000 in a portfolio consisting of assets X, Y, Z as follows:

Asset Annual Return probability beta proportion

X 10% 0.50 1.2 0.333

Y 8% 0.25 1.6 0.333

Z 16% 0.25 2.0 0.333

The beta of the portfolio containing X Y Z is

A. 2.0

B. 2.4

C. 1.6

D. 1.5

The beta of this portfolio indicates:

A. has more risk then market

B. has same risk as market

C. has an undetermined amount of risk compared to market

D. has less risk than the market

View complete question

Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M91627259
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Statistics and Probability

Folgers has specified that the average amount of coffee

Folgers has specified that the average amount of coffee that goes into one of their small coffee cans is not to exceed 13.24 ounces. A quality control inspector for Folgers takes a random sample of 16 cans and found the ...

In the game of roulette a player can place a 7 bet on the

In the game of? roulette, a player can place a ?$7 bet on the number 18 and have a 1/38 probability of winning. If the metal ball lands on 18?, the player gets to keep the ?$7 paid to play the game and the player is awar ...

Find the modified internal rate of return mirr the annual

Find the modified internal rate of return (MIRR) The annual rate is 8.24%. Initial outlay is $356,800. Year 1: $163,100 Year 2: $173,100 Year 3: $181,300 Year 4: $175,700 Year 5: $161,400

Is it possible to have no or very small collinearity and

Is it possible to have no (or very small) collinearity and correlation between variables, yet have the same R squared and Adjusted R squared values?

What is the sample size for studies with moe of -35 and -28

What is the sample size for studies with MOE of +/-3.5% and +/-2.8%?, with a confidence level of 95%, sample statistics of .50? Please show work.

You are lost on the mythy island in the summer when

You are lost on the Mythy Island in the summer, when tourists are two-thirds of the population. If you ask a tourist for direction the answer is correct with probability ¾; answers to repeated questions are independent e ...

Sppose a and b are collectively exhaustive in addition pa

Suppose A and B are collectively exhaustive. In addition, P(A) = 0.2 and P(B) = 0.8. Suppose C and D are both mutually exclusive and collectively exhaustive. Further, P(C|A) = 0.7 and P(D|B) = 0.5. What are P(C) and P(D) ...

A cupcake stand has 40 chocolate 30 coconut and 20 banana

A cupcake stand has 40 chocolate, 30 coconut and 20 banana cupcakes. Alice chooses 20 cupcakes at random to make a box as a present for her friend. What is the probability that she chose a. Eight banana and 6 coconut cup ...

Lets do some r suppose you have the following situation you

Let's do some R.... Suppose you have the following situation: You have a large jar of beans, 43% black, 57% white. You take a sample of 14 beans. a) Use R to figure out the probability for every single possible outcome. ...

You invested 7900 one year ago today it is worth 865490

You invested $7,900 one year ago. Today it is worth $8,654.90. What annual rate of interest did you earn? [use annual compounding]

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Statistics and Probability Expert