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1. To set up a $15,000 portfolio, Yolanda Kettle can invest in Kroger, E(R) = 8.4%, and in Logitech, E(R) = 12%. How much will
1. To set up a $15,000 portfolio, Yolanda Kettle can invest in Kroger, E(R) = 8.4%, and in Logitech, E(R) = 12%. How much will Yolanda allocate to Kroger if she wants her portfolio to have an E(R) = 9.9%?
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$5,468.75
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$8,750.00
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$8,333.33
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$8,020.83
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$6,250.00
2. The stock of Cleveland-Cliffs Inc. (Ticker: CLF) has a beta of 1.26 and an E(R) = 12.0%. In light of this information and knowing that U.S. T-Bills return 4%, Rm is equal to:
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10.35
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8.00
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8.83
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12.66
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8.89
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