In: Finance
Probability Portfolio Market
0.1 0.3 0.1
0.2 0.4 0.7
0.5 0.3 0.3
0.2 0.1 0.2
risk free rate is 6%
1. how much would you invest in the market portfolio and risk free asset, if you were to maintain the same beta as this portfolio
2. did this portfolio exceed market expectation?
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -