Sally, your secondary classmate who recently joined the asset management industry, shared the following information with you: Security Apple Inc. Amazon.com Inc. Industry Technology Retail Beta 1.22 1.19 Standard Deviation 32% 38%

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
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Sally, your secondary classmate who recently joined the asset management industry, shared the following information with you: The yield to maturity on the treasury bonds and the market risk premium is 3% and 5% respectively

b) Construct a portfolio comprising three assets (i.e. Apple, Amazon and treasury bonds) which produces an expected return of 6% and a beta of 0.6, based on the above information.

Sally, your secondary classmate who recently joined the asset management industry, shared
the following information with you:
Security
Apple Inc.
Amazon.com Inc.
Industry
Technology
Retail
Beta
1.22
1.19
Standard
Deviation
32%
38%
Transcribed Image Text:Sally, your secondary classmate who recently joined the asset management industry, shared the following information with you: Security Apple Inc. Amazon.com Inc. Industry Technology Retail Beta 1.22 1.19 Standard Deviation 32% 38%
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