Question
A portfolio consists of a Market Index fund which represents the overall market and Treasury bills. The Market Index fund has a portfolio weight of
A portfolio consists of a Market Index fund which represents the overall market and Treasury bills. The Market Index fund has a portfolio weight of 60% and the Treasury bills of 40%. The risk-free rate is 3.0% and the market risk premium is 6.0%. What is your best estimate of the portfolio required rate of return?
Group of answer choices
8.39%
9.02%
6.60%
7.76%
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Multinational Finance
Authors: Kirt C. Butler
3rd Edition
0324177453, 978-0324177459
