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a . Calculate the betas for portfolios A and B . b . If the risk - free rate is 2 . 3 % and
a Calculate the betas for portfolios A and
b If the riskfree rate is and the market return is calculate the required return for each portfolio using the CAPM.
a The beta of portfolio is
Round to three decimal places.
The beta of portfolio is
Round to three decimal places.
b The required return of portfolio is
Round to two decimal places.
The required return of portfolio is
Round to two decimal places.
c The weighted return of portfolio is
Round to two decimal places.
The weighted return of portfolio is
Round to two decimal places.
Since the market return is expected to be
he should probably choose the portfolio with the higher beta, portfolio
Select from the dropdown menus.
: Data Table
Click on the icon here in order to copy the contents of the data table below into a spreadsheet.
: Data Table
Click on the icon here in order to copy the contents of the data table below into a spreadsheet.
positive
negative
B
unchanged
A or B
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