Anakin forms an aggressive growth portfolio by investing 23% of his savings in GM stock,...
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Anakin forms an aggressive growth portfolio by investing 23% of his savings in GM stock, 22% in Nissan stock 21% in Subaru stock, 10% in an index fund and the last 24% is allocated on a bond fund. Assume for simplicity that the index fund is a good proxy to the market portfolio and has a beta equal to 1, whereas the bond fund is a good proxy to the risklons asset. The bota of GM stock is 1.27, the bota of Nissan is 1.45, and the beta of Subaru is 1.67. u tho. expected return of the market index is 12% and the tink-free asset yields 4%what are the bets and the expected return of Anakin's portfolio? Give your answer rounded to two decimal places Thin question has 2 parts (e you will be clicking "Verily wion) What in the bota of the portfolio? Bp- Number Section Attempt 1 of 1
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