The following are estimates for two stocks.. Stock Expected Return A B 0.16 0.24 Beta 0.77 1.33 firm-specific Standard Deviation. 0.31 0.41 The market index has a standard deviation of 0.16 and the risk-free rate is 0.08. Suppose that we were to construct a portfolio with proportions: Stock A 0.32 Stock B 0.43 The remaining proportion is invested in Tbills Compute the nonsystematic standard deviation of the portfolio. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.

The following are estimates for two stocks.. Stock Expected Return A B 0.16 0.24 Beta 0.77 1.33 firm-specific Standard Deviation. 0.31 0.41 The market index has a standard deviation of 0.16 and the risk-free rate is 0.08. Suppose that we were to construct a portfolio with proportions: Stock A 0.32 Stock B 0.43 The remaining proportion is invested in Tbills Compute the nonsystematic standard deviation of the portfolio. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.

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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I, J, K

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