What is amd beta with the market

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The risk-free rate is 0%. The market portfolio has an expected return of 20% and a volatility of 20%. You have $100 to invest. You decide to build a portfolio x which invests in both the risk-free investment and the market portfolio.

a. How much should you invest in the market portfolio and the risk-free investment if you want portfolio x to have an expected return of 40%?

b. How much should you invest in the market portfolio and the risk-free investment if you want portfolio x to have a volatility of 10%? Instead of investing in the market portfolio, you decide to invest in individual stocks. After some research, you decide to invest all your $100 in D's stock because you really like its CEO. D has a volatility of 40%. D's return has a correlation of 0.8 with the market portfolio.

c. What is AMD's beta with the market?

d. What is AMD's expected return?

Reference no: EM132798437

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