Question
Asset W has an expected return of 13.7 percent and a beta of 1.39. If the risk-free rate is 4.64 percent, complete the following table
Asset W has an expected return of 13.7 percent and a beta of 1.39. If the risk-free rate is 4.64 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your portfolio expected return answers as a percentage and round to 2 decimal places (e.g., 32.16). Round your portfolio beta answers to 3 decimal places (e.g., 32.161).) |
Percentage of | Portfolio | Portfolio | ||||||
Portfolio in Asset W | Expected Return | Beta | ||||||
0% | n/r % | n/r | ||||||
25 | n/r % | n/r | ||||||
50 | n/r % | n/r | ||||||
75 | n/r % | n/r | ||||||
100 | n/r % | n/r | ||||||
125 | n/r % | n/r | ||||||
150 | n/r % | n/r |
If the tax rate is 35 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
Aftertax salvage value | $ |
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