Exhibit 6.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROB…

Exhibit 6.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   Asset (A) Asset (B) E(RA) = 25% E(RB) = 15% (sA) = 18% (sB) = 11% WA = 0.75 WB = 0.25 COVA,B = -0.0009   Refer to Exhibit 6.2. What is the expected return of a portfolio of two risky assets if the expected return E(Ri), standard deviation (si), covariance (COVi,j), and asset weight (Wi) are as shown above?  

Exhibit 6.11 USE THE INFORMATION BELOW FOR THE FOLLOWING PRO…

Exhibit 6.11 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   Asset 1 Asset 2 E(R1) = 0.28 E(R2) = 0.12 E(s1) = 0.15 E(s2) = 0.11 W1 = 0.42 W2 = 0.58 r1,2 = 0.7   Refer to Exhibit 6.11. Calculate the expected standard deviation of the two-stock portfolio.

Assume that as a portfolio manager the beta of your portfoli…

Assume that as a portfolio manager the beta of your portfolio is 0.85 and that your performance is exactly on target with the SML data under condition 1. If the true SML data is given by condition 2, how much does your performance differ from the true SML?   (1) RFR = 0.0475 Rm(proxy) = 0.0975 (2) RK = 0.0325 Rm(true) = 0.0845

Exhibit 7.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROB…

Exhibit 7.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   ​ Rates of Return Year RA Computer Market Index 1 13 17 2  9 15 3 -11  6 4 10  8 5 11 10 6  6 12       Refer to Exhibit 7.1. Compute the beta for RA Computer using the historic returns presented above.

Exhibit 7.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROB…

Exhibit 7.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   You expect the risk-free rate (RFR) to be 3 percent and the market return to be 8 percent. You also have the following information about three stocks.   ​ ​ Current Expected Expected Stock Beta Price Price Dividend X 1.25 $20 $23 $1.25 Y 1.50 $27 $29 $0.25 Z 0.90 $35 $38 $1.00     Refer to Exhibit 7.2. What are the expected (required) rates of return for the three stocks (in the order X, Y, Z)?

Exhibit 18.3 USE THE INFORMATION BELOW FOR THE FOLLOWING PRO…

Exhibit 18.3 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   Consider the data presented below on three mutual funds and the market.   ​ ​ Standard ​ ​ Fund Beta Deviation (%) Return (%) Rf (%) AAA 0.75 7.0 14 3 BBB 1.05 5.0 18 3 CCC 0.89 8.0 20 3 Market 1.00 8.0 12 3     Refer to Exhibit 18.3. Compute the Treynor Measure for the CCC fund.