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Assume That Both Apple and Yahoo Plot on the SML

question 18

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Assume that both Apple and Yahoo plot on the SML.Apple has a beta of 2.6 and an expected return of 21.2%.Yahoo has a beta of 0.90 and an expected return of 9.3%.The expected return on the market portfolio is 10%and the risk-free rate is 3%.If you wish to hold a portfolio consisting of Apple and Yahoo and have a portfolio beta equal to 1.5,what proportion of the portfolio must be in Apple? What is the expected return on the portfolio? Assume that both Apple and Yahoo plot on the SML.Apple has a beta of 2.6 and an expected return of 21.2%.Yahoo has a beta of 0.90 and an expected return of 9.3%.The expected return on the market portfolio is 10%and the risk-free rate is 3%.If you wish to hold a portfolio consisting of Apple and Yahoo and have a portfolio beta equal to 1.5,what proportion of the portfolio must be in Apple? What is the expected return on the portfolio?


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Natural Electrical Activity

The spontaneous electrical signals generated by neurons and other excitable cells as part of their normal physiological functions.

Epinephrine Norepinephrine

Two key neurotransmitters involved in the body's fight or flight response, regulating heart rate and blood pressure among other functions.

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Endocrine glands located above the kidneys that produce a variety of hormones, including adrenaline and cortisol, which regulate stress responses and other bodily functions.

Thyroid Gland

An endocrine gland in the neck that produces thyroid hormones, which regulate the body's metabolism, energy level, and overall growth and development.

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