Suppose Yachi Industries has a beta of 1.2. The expected return on a market portfolio is...
Suppose Yachi Industries has a beta of 1.2. The expected return
on a market portfolio is 10%, and risk free rate is 4%. What is the
expected return of Yachi?
If you want to diversify your investment risk, so you decide to
invest 40% of your money in Yachi, and rest of your money in a
government bond (risk-free). If you know the standard deviation of
Yachi is 10%
what is your portfolio standard deviation.
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