You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset:PortfolioXYZMarketRisk-freeRp14.5%R-squared13.59.110.75.4op36%31212606p1.601.30.801.000Assume that the correlation of returns on Portfolio Y to returns on the market is 72. What percentage ofPortfolio Y's return is driven by the market? (Enter your answer as a decimal not a percentage. Roundyour answer to 4 decimal places.)

> R -squared = Correlation ^2> Here> Correlation = 0.72

You are given the following information concerning three portfolios, the market portfolio, and the risk- free asset: Portfolio X Y Z Market Risk-free Rp 14.5% 13.5 9.1 10.7 5.4 R-squared op 36% 31 21 26 8p 1.60 1.30 .80 1.00 Assume that the correlation of returns on Portfolio Y to returns on the market is .72. What percentage of Portfolio Y's return is driven by the market? (Enter your answer as a decimal not a percentage. Round your answer to 4 decimal places.)

You are given the following information concerning three portfolios, the market portfolio, and the risk- free asset: Portfolio X Y Z Market Risk-free Rp 14.5% 13.5 9.1 10.7 5.4 R-squared op 36% 31 21 26 8p 1.60 1.30 .80 1.00 Assume that the correlation of returns on Portfolio Y to returns on the market is .72. What percentage of Portfolio Y's return is driven by the market? (Enter your answer as a decimal not a percentage. Round your answer to 4 decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 6P

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