Question
1.(a) Amy has $80,000 invested in a stock with a beta of 0.4 and another $60,000 invested in a stock with a beta of 1.8.
1.(a) Amy has $80,000 invested in a stock with a beta of 0.4 and another $60,000 invested in a stock with a beta of 1.8. If these are the only two investments in her portfolio, what is her portfolio's beta?
(b) Suppose, the 3-month t-bill rate is currently 3% and the expected return on the market portfolio is 9%. What is the required return on Amy's portfolio of these two stocks?
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Fundamentals Of Strategy
Authors: Gerry Johnson, Kevan Scholes, Richard Whittington
2nd Edition
0273713108, 9780273713104
