Question
A portfolio has the following composition: Security Weight Expected Beta A 10% 0.8 B 20% 1.1 C 30% 1.3 D 40% 0.7 What is the
A portfolio has the following composition:
Security | Weight | Expected Beta |
A | 10% | 0.8 |
B | 20% | 1.1 |
C | 30% | 1.3 |
D | 40% | 0.7 |
What is the expected beta of the portfolio?
Stock A had a market value of $20, Stock B had a market value of $30. During the year, Stock A generated cash flow of $3 and Stock B generated cash flow of $4. The current market values are, Stock A is $22 and Stock B is $31.
What is the rate of return on stock A?
A portfolio has the following composition:
Security | Weight | Expected Beta |
A | 10% | 0.8 |
B | 20% | 1.1 |
C | 30% | 1.3 |
D | 40% | 0.7 |
If the risk-free rate is currently 3%, and the expected market risk premium is 4%, what should be the expected return of the portfolio according to CAPM?
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