Question
An investor plans to invest funds in the following stocks: Stock Beta Amount Invested A 1.39 $1,939.00 B 1.21 $2,818.00 C 0.75 $1,378.00 The risk-free
An investor plans to invest funds in the following stocks:
| Stock | Beta | Amount Invested |
|---|---|---|
| A | 1.39 | $1,939.00 |
| B | 1.21 | $2,818.00 |
| C | 0.75 | $1,378.00 |
The risk-free rate is currently 3.00%, while the market risk premium is 6.00%.
Given the above information, find the required return to hold this portfolio.
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The Volatility Surface A Practitioner's Guide
Authors: Jim Gatheral
1st Edition
0471792519, 978-0471792512
