Question
Beta coefficients and the capital asset pricing modelPersonal Finance ProblemKatherine Wilson is wondering how much risk she must undertake to generate an acceptable return on
Beta coefficients and the capital asset pricing modelPersonal Finance ProblemKatherine Wilson is wondering how much risk she must undertake to generate an acceptable return on her porfolio. The risk-free return currently is 4%.
The return on the average stock (market return) is 15%.
Use the CAPM to calculate the beta coefficient associated with a portfolio return of 20%.
The beta portfolio is? (Round to four decimal places)
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
