Question
5. (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
5. (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 portfolios 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 Amys portfolio of these two stocks?
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The Routledge Handbook Of Critical Finance Studies
Authors: Christian Borch, Robert Wosnitzer
1st Edition
1138079812, 978-1138079816
