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An investor is forming a portfolio by investing $25,000 in stock A which has a beta of 2.40, and $25,000 in stock B which has
An investor is forming a portfolio by investing $25,000 in stock A which has a beta of 2.40, and $25,000 in stock B which has a beta of 0.60. The return on the market is equal to 8% and treasure bonds have a yield of 3% (rRF). Whats the portfolio beta?
2.40 | ||
1.50 | ||
1.40 | ||
1.80 |
calculate the required rate of return on the investors portfolio
8.0% | ||
10.8% | ||
11.2% | ||
10.5% |
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