Question
An individual has $745,500 invested in a stock with a beta of 1.18, $681,000 invested in a stock with a beta of 1.47, $368,000 invested
An individual has $745,500 invested in a stock with a beta of 1.18, $681,000 invested in a stock with a beta of 1.47, $368,000 invested in a stock with a beta of 1.22, and another $810,250 invested in a stock with a beta of 0.59. If these are the only four investments in the portfolio, what is the portfolio's beta?
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b) Assume the required retur on the market is 6 18 and the risk-free rate is 3.85%. What is the required return on a stock with a beta of 0.62? What is the required return on a stock with a beta of 1.44?
An individual has $745,500 invested in a stock with a beta of 1.18, $681,000 invested in a stock with a beta of 1.47, $368,000 invested in a stock with a beta of 1.22, and another $810,250 invested in a stock with a beta of 0.59. If these are the only four investments in the portfolio, what is the portfolio's beta?
For the toolbar, press Al T-F10 (PC) or ALT+EN+F10 (Mac).
b) Assume the required retur on the market is 6 18 and the risk-free rate is 3.85%. What is the required return on a stock with a beta of 0.62? What is the required return on a stock with a beta of 1.44?
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Auditing An International Approach
Authors: Wally Smieliauskas, Amy Kwan, Kathleen Cogliano, Catherine Barrette
8th Canadian Edition
1259451275, 978-1259451270
