Question
2.Tom has a three stock portfolio. Details of the portfolio are provided in the table. If the T-bill rate is 6% and the market risk
2.Tom has a three stock portfolio. Details of the portfolio are provided in the table. If the T-bill rate is 6% and the market risk premium is 6.5%. According to the CAPM, what is the expected return of Jim's portfolio? ____%
| Stock | Investment | Beta |
| A | $60,000 | 1.6 |
| B | $80,000 | 1.0 |
| C | $60,000 | 0.8 |
Please show all work and formulas, thank you.
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Contemporary Issues In Quantitative Finance
Authors: Ahmet Can Inci
1st Edition
1032101121, 978-1032101125
