Suppose there are only three assets (A, B, and C) in a market. Given the following information: Asset Market Expected Standard Correlation Beta with market Value Return Deviation portfolio A $1,000,000 (i) 50% 0.3 2.9 В $2,000,000 8% 15% (iv) 1.05 $2,000,000 3% 0% (v) Market $5,000,000 15% (ii) 1 (iii) Fill in the missing values in the table.

Use the following table to calculate the expected return from the asset. Return Probability 0.1      0.25     0.2      0.5     0.25      0.25       20.00% 18.75% 17.50% 15.00%

Consider the following two assets: Asset                                        Expected return                                    Standard deviation of returns 1                                                        18%                                                                 30% 2                                                          8%                                                                  10% The returns on the two assets are perfectly negatively correlated (i.e. coefficient of -1). Calculate the proportions of assets 1 and 2 that generate a portfolio with a standard deviation of zero. What is the expected return of that portfolio?

Qu. 5 please help and show all steps with formulas used

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Nikul

Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. a. Find the required return for an asset with a beta of 1.48 when the risk-free rate and market return are 8% and 13%, respectively. b. Find the risk-free rate for a firm with a required return of 14.684% and a beta of 1.47 when the market return is 12%. c. Find the market return for an asset with a required return of 12.040% and a beta of 0.95 when the risk-free rate is 5%. d. Find the beta for an asset with a required return of 13.312% when the risk-free rate and market return are 10% and 12.3%, respectively. C a. The required return for an asset with a beta of 1.48 when the risk-free rate and market return are 8% and 13%, respectively, is %. (Round to two decimal places.)

Consider the case of two financial assets and three market conditions (states). The tablebelow gives the respective probability for each market condition and the return of each assetin each one of them.                                                          Market Conditions State Recession  Normal Expansion Probability of state 30% 40%  30% Return of asset A -30%  20% 55% Return of asset B -10%  70% 0% Consider the portfolio with 50% investment in each of the two assets above. Calculatethe expected return and the standard deviation of the portfolio.

What is the standard deviation of the portfolio that invests equally in all three assets​ M, N, and​ O?

Consider the following portfolio of assets: Loan Weight 1 0.30 2 0.70 Expected returni ம σ2 13% 11% 9.06% 82.0% P12=-0.87 8.72% 76.0% 012-75.0% What is the variance of the portfolio (round to two decimals)? Note: a^2 denotes the square of a. For example, 2^2 = 4, 3^2=9 (0.3)^2*(82.0%) + (0.7)^2*(76.0%) + (0.3) (0.7)(-0.87) (9.06%) (8.72%) = 30.19 (0.3)^2 (82.0%) + (0.7)^2*(76.0%) + 2(0.3) (0.7)(-0.87) (9.06 %) (8.72%) = 15.75 (0.3)^2*(82.0%) + (0.7)^2*(76.0%) + [(0.3) (0.7)]^2 (-0.87) (9.06%) (8.72%) = 41.59 (0.3) (82.0%) + (0.7) (76.0%) + 2(0.3) (0.7)(-0.87) (9.06 %) (8.72%) = 48.93