Question
31. If you know that the risk-free rate is 4.9% and the expected market risk premium is 5.6%, what would be the expected return of
31. If you know that the risk-free rate is 4.9% and the expected market risk premium is 5.6%, what would be the expected return of a stock with a beta of 1.9 using CAPM? (Answer to the nearest tenth of a percent, but do not use a percent sign).
30. Given the following information, calculate the beta for the portfolio of stocks A, B, and C. (Answer to the nearest tenth).
|
| Amount | Stock |
|
| Invested | Beta |
|
|
|
|
| Stock A | $8,000 | 1.5 |
| Stock B | $4,000 | 1.6 |
| Stock C | $2,000 | 0.8 |
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrod Harford, David Stangeland, Andras Marosi
3rd Canadian Edition
0135418178, 978-0135418178
