1. Use the following information for questions
Portfolio Expected Return Standard Deviation Correlation with Market
A 15% 29% .8
B 9% 17% .4
C 12% 27% .7
D 10% 21% .5
E 14% 36% .6
Market 11% 18% 1
Risk Free 5% 0% 0
2. . Approximately what percentage of Portfolio D’s returns will be between 10% and 30%? Assume that all of the portfolios returns are normally distributed.
a) 20% b) 33% c) 50% d) 67%
3. What is Portfolio B’s Beta?
a) .38 b) .65 c) .89 d) 1.29