Assignment Help-What is the beta coefficient? What does a beta of less than one on asset mean? What is beta is greater than one? If beta is greater than one, will anyone hold that asset? Explain.

Assignment Help-What is the beta coefficient? What does a beta of less than one on asset mean? What is beta is greater than one? If beta is greater than one, will anyone hold that asset? Explain.

If there is a risk free asset, construct the “menu” of portfolio options available in capm model? What is the market portfolio and what determines the portfolio choice of a decision-maker? Explain.

What is the beta coefficient? What does a beta of less than one on asset mean? What is beta is greater than one? If beta is greater than one, will anyone hold that asset? Explain.

How do you arrive at the result that betai = Cov(Ri, Rm)/Var(Rm)? How is this value calculated in practice?

Sometimes a broad index of stocks is used as the market portfolio. Why might this market portfolio be of limited use? Explain.

Use marginal analysis to find the condition for the optimal portfolio. You need only consider two asset portfolios.