Consider a portfolio consisting of the following three stocks Portfolio Weight Volatility Correlation with Market Portfolio HEC Corp 0.25 12% 0.4 Green Midget 0.35 25% 0.6 Alive and Well 0.4 13% 0.5 The volatility of the market portfolio is 10% and it has an expected return of 8%. The risk-free rate is 3%. The expected return of the portfolio is closest to: 7.53% 10.50 6.25% 5.4%
Consider a portfolio consisting of the following three stocks Portfolio Weight Volatility Correlation with Market Portfolio HEC Corp 0.25 12% 0.4 Green Midget 0.35 25% 0.6 Alive and Well 0.4 13% 0.5 The volatility of the market portfolio is 10% and it has an expected return of 8%. The risk-free rate is 3%. The expected return of the portfolio is closest to: 7.53% 10.50 6.25% 5.4%
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Consider a portfolio consisting of the following three stocks |
|
|
Portfolio Weight |
Volatility |
Correlation with Market Portfolio |
|
HEC Corp |
0.25 |
12% |
0.4 |
|
Green Midget |
0.35 |
25% |
0.6 |
|
Alive and Well |
0.4 |
13% |
0.5 |
|
The volatility of the market portfolio is 10% and it has an expected return of 8%. The risk-free rate is 3%. The expected return of the portfolio is closest to: |
-
7.53%
-
10.50
-
6.25%
-
5.4%
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