Question

The coordinates of two securities a & b in (,e(r)) space are respectively (8,12) and (12,24) with respective betas 1.2 and 2.0. A portfolio is proposed to be constituted comprising of these securities a & b in the ratio 3:1 (in terms of the amount of investment). The variance of the market portfolio is 25(%)2. Assuming that the capm holds, calculate the systematic and unsystematic risk of the portfolio so constituted, expressed in (%)2.

Answer 1

Answer:

12 373 838 83 feet 38 dependimd on yr three equation of motion