It's a second level finance course question regarding CAPM:
Catherine invests 20% of her wealth in the risk free asset and the rest in Apple shares and Google shares. The risk premium on Apple shares is 10%, the risk premium on Google is 7% and the market risk premium is 8%. Catherine's total portfolio of the three assets is 10% less risky than the market portfolio. Calculate the weight of Apple in her portfolio. Assume that the Capital Asset Pricing Model holds.
Recently Asked Questions
- Year 0 1 2 3 Cash flow $-16775 $4575 $5500 $9180 Disc rate 6.50% PV Factor 1 .93897 .88166 .82785 NPV -$30.44 What is the break even cash flow for year 0, in
- For the attached, it appears that I just use the business class written in the instructions. I’m struggling with producing the remaining java files
- Please refer to the attachment to answer this question. This question was created from Chapter 20 Practice Quiz. Additional comments: "the option are -