Question
#18 You have $300 invested in stock A with a beta of 2.5, $200 invested in stock B with a beta of 1.5, and $500
#18 You have $300 invested in stock A with a beta of 2.5, $200 invested in stock B with a beta of 1.5, and $500 invested in stock C with a beta of 0.6. If the risk-free rate is 3% and the market risk premium is 7%, what should be the required return of the portfolio?
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A. 12.45%
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B. 15.95%
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C. 14.90%
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D. 8.40%
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
13th Edition
1337395080, 9781337395083
