Question
Calculate the expected rate return of your portfolio. 2 Marks Calculate the portfolio beta. 2 Marks Given the Risk-free rate is 7% and the
Calculate the expected rate return of your portfolio. 2 Marks Calculate the portfolio beta. 2 Marks Given the Risk-free rate is 7% and the expected return on the market portfolio is 15.5%, estimate the required rate of return for stock 1 and 2. 4 Marks Stock 1 2 3 4 5 Percentage of portfolio % 20 30 15 25 10 Beta 1.0 0.85 1.2 0.6 1.6 Expected return% 16 14 20 12 24
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
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