Question
1, 2 PORTFOLIO BETA An individual has $50,000 invested in a stock with a beta of 0.4 and another $50,000 invested in a stock with
1, 2 PORTFOLIO BETA
An individual has $50,000 invested in a stock with a beta of 0.4 and another $50,000 invested in a stock with a beta of 1.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.
REQUIRED RATE OF RETURN
Assume that the risk-free rate is 4% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 2.4? Round your answer to two decimal places.
%
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International Financial Markets And The Firm
Authors: Piet Sercu, Raman Uppal
1st Edition
1861523548, 978-1861523549
