Example 19: Refer to the following data for computing betas for: I) Security X, 2) Security Y, 3) For an equally weighted portfolio of securities X and Y.

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Example 19: Refer to the following data for computing betas for:
I) Security X,
2) Security Y,
3) For an equally weighted portfolio of securities X and Y.
Correlation Coefficients
i with Market
Security i
Standard Deviation of i
0.5
0.25
Y
0.3
0.30
2
E (Rm)=0.12, T=0.05, =0.01
Transcribed Image Text:Example 19: Refer to the following data for computing betas for: I) Security X, 2) Security Y, 3) For an equally weighted portfolio of securities X and Y. Correlation Coefficients i with Market Security i Standard Deviation of i 0.5 0.25 Y 0.3 0.30 2 E (Rm)=0.12, T=0.05, =0.01
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