Question
Asset W has an expected return of 12.3 percent and a beta of 1.3. If the risk-free rate is 4 percent, complete the following table
Asset W has an expected return of 12.3 percent and a beta of 1.3. If the risk-free rate is 4 percent, complete the following table for portfolios of Asset W and a risk-free asset.
Please include work so I can see where your #s come from. Thanks!
| % of Portfolio in Asset W | Portfolio Expected Return | Portfolio Beta |
| 0% |
| 0 |
| 25% |
|
|
| 50% |
|
|
| 75% |
|
|
| 100% | 12.3% | 1.3 |
| 125% |
|
|
| 150% |
|
|
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The Handbook Of Financing Growth
Authors: Kenneth H. Marks, Larry E. Robbins, Gonzalo Fernandez, John P. Funkhouser, D. L. Williams
2nd Edition
0470390158, 978-0470390153
