Please correct answer and don't use hand rating 2. An investor is considering five securities in the portfolio with following expected return,standard deviation and beta:AssetsReturn %Apple30.0025.00Standard Deviation %0.1Beta1.40Microsoft9.0012.000.40Facebook15.0023.001.30Netflix22.0013.000.20Amazone35.0021.001.45Tesla25.0020.001.20The market, with index used as proxy, is expected to have a standard deviation of 13%.The investor has decided to put 10%, 20%, 15%, 25%, AND 15% respectively in Apple, ISYMicrosoft, Facebook, Netflix, Amazone and Tesla. Find out the expected return and riskof the portfolio.Of the total risk what risk is attributable to systematic risk and what risk is non-systematic(10)riskintheportfolio.

Explanation of Systematic and Non-Systematic RiskSystematic risk is represented by the portfolio…

Answered: 2. An investor is considering five…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 20P

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