A friend brags that she expects to earn a return of 10.25% on her portfolio with a beta of 0.825
Can you match her performance with Stock X (12% return and a beta of 1.1 ) and the risk free asset that earns a 5% return? With what portfolio weights?
A) Yes, 0.75 Stock X and 0.25 Risk Free Asset
B) Yes, 0.25 Stock X and 0.75 Risk Free Asset
C) Yes, 0.5 Stock X and 0.5 Risk Free Asset
D) No
A
Business
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Three events occur with probabilities P(E1 ) = 0.35, P(E2 ) = 0.15, P(E3 ) = 0.40. If the event B occurs, the probability becomes P(E1|B) = 0.25, P(B) = 0.30
Assume that E1, E2, and E3 are independent events. Calculate P(E1 and E2 and E3 ). A) 0.575 B) 0.075 C) 0.021 D) 0.475
Business