Question
A portfolio consisting only of the market portfolio and a risk-free security had a return of 6.0% during the previous year. During the same period,
A portfolio consisting only of the market portfolio and a risk-free security had a return of 6.0% during the previous year. During the same period, the market portfolio had a return of 12.0% and the risk-free rate was 2.0%. Assuming that the CAPM holds, what fraction of the portfolio was invested in the market portfolio? A) 33.33% B) 40.00% C) 60.00% D) 66.67%
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Financial Management Principles And Applications
Authors: Dr. S. Kr. Paul, Prof. Chandrani Paul
1st Edition
1647251664, 9781647251666
