You are going to invest P20,000 in a portfolio consisting ofassets X, Y, and Z, as follows: Probability 0.50 0.25 Asset X Beta 1.2 1.6 Proportion 0.333 0.333 0.333 Annual return 10% 8% 16% Y 0.25 2.0
You are going to invest P20,000 in a portfolio consisting ofassets X, Y, and Z, as follows: Probability 0.50 0.25 Asset X Beta 1.2 1.6 Proportion 0.333 0.333 0.333 Annual return 10% 8% 16% Y 0.25 2.0
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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What is the expected annual return of this portfolio?
![You are going to invest P20,000 in a portfolio consisting of assets X, Y, and Z, as follows:
Probability
0.50
Beta
1.2
1.6
2.0
Asset
Annual return
10%
Proportion
0.333
0.333
0.333
0.25
0.25
Y
8%
16%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2f85821-d0df-426d-b81a-733b943fc638%2F3634ba80-ce7d-4c25-8238-40241157e82c%2Ftysboov_processed.png&w=3840&q=75)
Transcribed Image Text:You are going to invest P20,000 in a portfolio consisting of assets X, Y, and Z, as follows:
Probability
0.50
Beta
1.2
1.6
2.0
Asset
Annual return
10%
Proportion
0.333
0.333
0.333
0.25
0.25
Y
8%
16%
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