What is your annualized return

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Reference no: EM131851704

1. You own two risky assets, both of which plot on the security market line. Asset A has an expected return of 12.57 % and a beta of 1.03 Asset B has an expected return of 14.42 % and a beta of 1.68 If your portfolio beta is the same as the market portfolio, what proportion of your funds are invested in Asset A?

2. Assume you buy a share of stock at $40, it pays $1.18 in dividends, and you sell it 241 days later for $32. What is your annualized return? Enter a negative percentage for a loss and assume a 365-day year.

Reference no: EM131851704

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