Question 4<>3.8 CAPM: The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolioare normally distributed. Suppose a portfolio has an average annual return of 14.7% (i.e. an average gain of14.7%) with a standard deviation of 33%. A return of 0% means the value of the portfolio doesn't change, anegative return means that the portfolio loses money, and a positive return means that the portfolio gainsmoney.(please round answers to within one hundredth of a percent)(a) What percent of years does this portfolio lose money, i.e. have a return less than 0%?(b) What is the cutoff for the highest 15% of annual returns with this portfolio?%

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Answered: Question 4 <> 3.8 CAPM: The Capital…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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