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Amount Invested Beta 3,000 shares of Stock A $10,000 Beta = 1.8 1,000 shares of Stock B $10,000 Beta = 1.5 6,000 shares of Stock
Amount Invested Beta
3,000 shares of Stock A $10,000 Beta = 1.8
1,000 shares of Stock B $10,000 Beta = 1.5
6,000 shares of Stock C $30,000 Beta = 1.2
If the risk-free rate of return is 5% and the market risk premium is 8%, then the required return on the portfolio is ________.
3,000 shares of Stock A $10,000 Beta = 1.8
1,000 shares of Stock B $10,000 Beta = 1.5
6,000 shares of Stock C $30,000 Beta = 1.2
If the risk-free rate of return is 5% and the market risk premium is 8%, then the required return on the portfolio is ________.
14.60% | ||
15.97% | ||
17.00% | ||
18.85% | ||
None of the above |
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Basic Finance An Introduction to Financial Institutions, Investments and Management
Authors: Herbert B. Mayo
11th Edition
1285425790, 1285425795, 9781305464988 , 978-1285425795
