00:01
First is the calculation of the calculation of beta.
00:14
I know it is a major of volatility.
00:19
The systematic risk of a stock relative to the market is so it calculated as covariance between box return and the market.
00:27
So all stock a would be covariance.
00:41
Are a and but if a variance are m.
00:49
So it is equal to 0 .5.
00:55
0 .5 0 .5.
01:04
Goes to percent.
01:07
Therefore the beta of the stock a is then next we have to calculate the maximum sharpe ratio.
01:17
The sharpe ratio equals to a are as are f divided by standard deviation and a deviation are.
01:39
So can be calculated as can be calculated as the point in which er is expected return on the portfolio are is it is free tree and the standard deviation and a division portfolios return.
02:08
You have to calculate the expected return of the portfolio.
02:13
Expected return of portfolio which is equals to expected return into the point 0 plus 0 .5 0 .10, which is equals to 11 % expected return on top b that is for store a return on stock.
02:50
So it is equals to...