Question
An investor plans to invest funds in the following stocks: Stock Beta Amount Invested A 1.50 $1,700.00 B 1.26 $2,768.00 C 0.78 $1,015.00 The risk-free
An investor plans to invest funds in the following stocks:
| Stock | Beta | Amount Invested |
|---|---|---|
| A | 1.50 | $1,700.00 |
| B | 1.26 | $2,768.00 |
| C | 0.78 | $1,015.00 |
The risk-free rate is currently 3.00%, while the market risk premium is 7.00%.
What is the beta of this portfolio?
Given the above information, find the required return to hold this portfolio.
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Bond Markets Analysis And Strategies
Authors: Frank J. Fabozzi
6th Edition
0131986430, 9780131986435
