Question
An investor has the following portfolio: Stock Beta Investment Tootsie Roll Industries 1.91.9 $ 10 comma 000$10,000 The Hershey Company 1.8 $20,000 Nestle 1.1 $40,000
An investor has the following portfolio:
| Stock | Beta | Investment |
|
| Tootsie Roll Industries | 1.91.9 | $ 10 comma 000$10,000 | |
| The Hershey Company | 1.8 | $20,000 | |
| Nestle | 1.1 | $40,000 |
If the T-Bill rate is
5 %
and the market risk premium is
5.5 %,
according to the CAPM, what is the expected return for this portfolio?
The expected return for this portfolio is
nothing%
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Financial Management
Authors: Rajiv Srivastava, Anil Misra
2nd Edition
0198072074, 9780198072072
