Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

assume stock a has a beta of 1 . 2 and stock B has a beta of 1 . 6 ; and assume the market

assume stock a has a beta of 1.2 and stock B has a beta of 1.6; and assume the market expected rate of return is 12% and the risk free rate is 6%. What would the beta of a portfolio be in which you had 50% of your money in stock A,20% of your money in Stock B, and 30% of your money in the risk free rate? What would the expected return of that portfolio be

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cash Flow Stock Investing

Authors: Randall Stewart

1st Edition

1980883300, 978-1980883302

More Books

Students also viewed these Finance questions

Question

c. What were the reasons for their move? Did they come voluntarily?

Answered: 1 week ago

Question

5. How do economic situations affect intergroup relations?

Answered: 1 week ago