FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A portfolio is composed 10% of the risk free asset, 30% of the market portfolio and the remaining 60% of a stock whose beta is

A portfolio is composed 10% of the risk free asset, 30% of the market portfolio and the remaining 60% of a stock whose beta is 1.4. If the risk free rate is 2.5% and the expected return of the market is 11%, what is the expected return of this portfolio?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance

Public Finance

Authors: Harvey Rosen, Robert Guell, Ted Gayer

9th Edition

0073511358, 9780073511351

More Books

Students also viewed these Finance questions

Question

★★★★★
You are the manager of a California winery. How would you expect the following events to affect the price you receive for a bottle of wine? You may include graphs if they help illustrate your...

Answered: 1 week ago

Question

★★★★★
Specify methods using the method specification form.

Answered: 1 week ago

Question

★★★★★
1. Using one of the resources noted in the chapter, identify two programs in your area of interest. Develop an Excel or SPSS file based on the variables listed in Box 7.2 and fill in the spreadsheet...

Answered: 1 week ago

Question

★★★★★
According to Nielsen Media Research, approximately 52% of all U.S. households have digital cable television. In addition, 84% of all U.S. households have multiple TV sets. Suppose 45% of all U.S....

Answered: 1 week ago

Question

★★★★★
Select from the option list provided the type of bond that matches each definition below. Each choice may be used once, more than once, or not at all. Definition 1. The debtor may extinguish this...

Answered: 1 week ago

Question

★★★★★
B. (5 points) USCIO is configured in the UART mode to transfer 57,600 bits/second, 8-bit characters, even parity, and one stop bits. How many processor clock cycles (MCLK=220Hz ) expire during the...

Answered: 1 week ago

Question

★★★★★
A worker views leisure and income as "goods" and has an opportunity to work at an hourly wage of $16 per hour. a. The worker's opportunity set in a given 24-hour period is illustrated below.What are...

Answered: 1 week ago

Question

★★★★★
Question 26 [2 points} Using expansionary policies to combat a recession would 0 increase a budget deficit. 0 increase a budget surplus. 0 decrease discretionary spending. 0 increase federal revenue....

Answered: 1 week ago

Question

★★★★★
To analyze a complex negotiation (work, personal, or historical) To apply negotiation course concepts in your analysis. These objectives, while straightforward, are critical to your learning....

Answered: 1 week ago

Question

★★★★★
What Would You Do? Michael Michael is a student in your fifth-grade class. His father passed away in an automobile accident last year. Before his father's death Michael always did well in school and...

Answered: 1 week ago

Question

★★★★★
Exercise 8-23 (Algo) Preparing a balance sheet LO P1, P3, P4 Selected accounts from Gregor Company's adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet....

Answered: 1 week ago

Question

★★★★★
4. Imagine an everyday task that you find difficult or troublesome to perform. Think through the entire sequence of activities with this everyday task. How do you go about making this a success? How...

Answered: 1 week ago

Question

★★★★★
2. Imagine a real event that was problematic in your past. What images, sounds, emotions, smells and tastes appear? Try to imagine a movie clip of this inci-dent, as it could unfold if the...

Answered: 1 week ago

Question

★★★★★
5. How can I help others in the network achieve their goals?

Answered: 1 week ago

Previous Question Next Question