Question
Assume Rf = 5% and Rm = 8%. (a) If company A has A= 1.4 what is the expected rate of return? (b) What if
Assume Rf = 5% and Rm = 8%.
(a) If company A has A= 1.4 what is the expected rate of return?
(b) What if company B has B= .6?
(c) What if you have a portfolio with 50% in stock A and 50% in stock B?
(d) If company C has C= 1.4 what is it's expected return?
(e) What is the expected return of a portfolio that has 50% in stock A and 50% in stock C?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
133879879, 978-0133879872
