Homework Answers
1.
Adjusted beta=2/3*Unadjusted
beta+1/3*1=2/3*1.2+1/3*1=1.133333333
2.
=(20%)^2*9+(40%)^2*16+2*20%*40%*2+(40%)^2*25+2*40%*40%*3.5+2*40%*20%*5
=9.16
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