Question
12. Market risk premium is 8%, risk free rate is 3%, security x and y have beta of 1.25 and 0.6, what is the expected
12. Market risk premium is 8%, risk free rate is 3%, security x and y have beta of 1.25 and 0.6, what is the expected return of each one based on CAPM? (Ch7, slide 10) a. 13%, 7.8% b. 7.8%, 13% c. 9%, 10% d. 5%, 9%
13. Continue from question 2, whats beta of a portfolio with 40% in x and rest in y? (Ch7, slide 10) a. 0.6 b. 1.25 c. 0.86 d. NONE OF THE ABOVE
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Foundations In Personal Finance
Authors: Dave Ramsey
1st Edition
0981683967, 978-0981683966
