=+P825 Beta coefficients and the capital asset pricing model Suppose you are wondering how much risk you

Question:

=+P8–25 Beta coefficients and the capital asset pricing model Suppose you are wondering how much risk you must undertake to generate an acceptable return on your investment portfolio. The risk-free return currently is 3%. The return on the overall stock market is 12%. Use the CAPM to calculate how high the beta coefficient of your investment portfolio would have to be to achieve each of the following expected portfolio returns.

a. 13%

b. 25%

c. 16%

d. 18%

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (QA)

Answered By

Joseph Nogueras

Greetings, I am Joseph M. Nogueras Gantu, I am 29 years old, I like to work with Computers, Programming, Graphic Design, Education, but the most I like it is to share what I know and help anyone in need.I live by Faith and Courage, I had worked with young adults while I was a Math Tutor in college, and with Teens when I was a English Tutor and also with children when I was a Volunteer, and in Churches as part of a community. It is true I do not have lots of experience but I have some and I can learn and adapt pretty fast. Communication, Collaboration and Understanding are 3 key values for a successful learning experience. I want to show everyone how good they can become, Love is the Greatest asset and gift given us to live, so we must give Love by helping those that need it the most. As long as students are safe, knowing what it is right from wrong, with the right resources and commodities,they will be on right path, drawn for them.Thru effort and hard work and perseverance with discipline anything can be accomplished, All I want is to be able, to have the opportunity to be a better human being by helping others, especially the young who are in so much need, they are our good seeds of our future. Be Blessed.

0.00 0 Reviews 10+ Question Solved

Related Book For book-img-for-question