Question
A mutual manager is managing the account of a large investor. The investor holds the following stocks: Stock Amount Invested Estimated Beta A $2,000,000 0.80
A mutual manager is managing the account of a large investor. The investor holds the following stocks:
Stock Amount Invested Estimated Beta
A $2,000,000 0.80
B 3,000,000 ????
C 1,000,000 1.40
D 4,000,000 1.65
The portfolios required rate of return is 13 percent. The risk-free rate is 4 percent and the total return on the market portfolio is 10 percent. What is Stock Bs estimated beta?
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Principles Of Managerial Finance Brief
Authors: Chad J. Zutter, Scott B. Smart
8th Global Edition
1292267143, 978-1292267142
