expected return
a . Compute the expected return of the stocks A and B ?
b . Compute the risks of the stocks A and B ?
c . If the return of the Treasury Bills is 6 % . Compute the risk premium and the risk aversion of each stock
d . Assume that you invest $ 120,000 in X and 30,000 in Y. Compute the expected return and the risk of your portfolio
. e . Compute the reward to volatility of your portfolio and Interpret your answer
f . To decrease your risk on the financial market , you decide to invest 150,000 in the Treasury Bills . Compute the proportions of A and B in the complete portfolio .
g. Compute the expected return and the standard deviation of the complete portfolio .
h. Compute the reward to volatility of the complete portfolio . What do you notice ? . Explain the Capital Allocation Lime
I.. Explain the Capital Allocation Line.
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