Question
A stock has a beta of 1.1 and an expected return of 12%. The risk-free asset currently earns 4%. If a portfolio of the two
A stock has a beta of 1.1 and an expected return of 12%. The risk-free asset currently earns 4%. If a portfolio of the two assets has a beta of 1.65 what is the weight of the stock in the portfolio and expected return of the portfolio?
| A. | 125%, 14% | |
| B. | 100%, 12% | |
| C. | 150%, 16% | |
| D. | 0%, 4% |
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
10th Edition
0128150750, 978-0128150757
