Information is provided for the common stock of company X, an efficient portfolioQ, the market portfolio M, and the riskless asset.
Please assume the correlation between the return of stock X and the return of the market portfolio is 0.4.
Can you fill in the values of the 5 empty cells?
|
Expected Return
|
Beta
|
Standard Deviation
|
Stock X
|
|
1.2
|
|
Efficient Portfolio Q
|
|
2.0
|
|
Market Portfolio M
|
8%
|
|
20%
|
Riskless Asset
|
3%
|
0.0
|
0%
|