Please show full working a. What is the portfolio mean & variance (arithmetic only): i. For an equally weighted portfolio ? ii. For a market-value weighted portfolio ?(use market cap as of the beginning of the period)
Please show full working a. What is the portfolio mean & variance (arithmetic only): i. For an equally weighted portfolio ? ii. For a market-value weighted portfolio ?(use market cap as of the beginning of the period)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Question
Transcribed Image Text:A
В
C
D
F
G
H
J
1
A
В
C
D
E
1 Market Capitalization, in millions
3
2
YUM
ZTS
AAPL
Market (OEX)
4
3
31/01/18 28506.29 37389.63 369899.4
15851230
4
5 Monthly prices
7
6 Dates
YUM
ZTS
AAPL
Market (OEX)
8
7
31/01/18
84.59
76.73
87.3
1251.42
9.
10
28/02/18
81.38
80.86
75.74
1201.87
9.
11
30/03/18
85.13
83.51
74.61
1157.37
10
30/04/18
87.1
83.48
77.75
1160.73
12
11
31/05/18
81.33
83.7
81.24
1188.91
13
12
29/06/18
78.22
85.19
82.73
1194.5
14
13
31/07/18
79.29
86.48
81.51
1241.76
15
14
31/08/18
86.89
90.6
80.17
1286.9
16
15
28/09/18
90.91
91.56
85.02
1294.27
17
18 Please show full working
19
а.
What is the portfolio mean & variance (arithmetic only):
i. For an equally weighted portfolio ?
ii. For a market-value weighted portfolio ?(use market cap as of the beginning of the period)
20
21
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