CAPM An investor holds a portfolio of three securities. She invests 30 per cent in A, 30

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CAPM An investor holds a portfolio of three securities. She invests 30 per cent in A, 30 per cent in B and 40 per cent in C. The betas on A, B and C are 1.5, 0.6 and 1.1, respectively. If E(RM) = 12% and RF = 4%, calculate the expected return and beta of the portfolio.

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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