Bafi 1008 – What Is The Equilibrium Rate Of Return On Sabco

A small question in Business Finance, need the answers in 20 minues . In calculating your answer for all of the questions below use up to a maximum of seven decimal places, then round-off to four decimal places for your final answer Do not express your answers in % form (i. e. enter 0. 0231 instead of 2. 31%)Assume the following information: AssetBetaStandard DeviationCorrelation CoefficientSABCoRMUT Co. SABCo0. 930. 02710. 26RMUT Co. 0. 780. 0430. 261Also assume that the rate of return on a 10-year Treasury Bond is 2. 74% and that the expected return on the market portfolio is 5. 45% p. a. A) What is the equilibrium rate of return on SABco? Answer: AnswerB) What is the equilibrium rate of return on RMUT Co. ? Answer: AnswerC) What is the equilibrium return on a portfolio comprised of a 82% weighting in SABCo and the balance in RMUT Co. ?Answer: AnswerD) What is the standard deviation of the portfolio constructed in Part C?Answer: AnswerE) What is the systemic risk of the portfolio constructed in Part C?Answer: Answer