Question
Chapter 6: Risk and Project Appraisal or Chapter 7: Portfolio Theory or Chapter 8: CAPM and Multi-Factor Models. Please solve as soon as possible, I
Chapter 6: Risk and Project Appraisal or Chapter 7: Portfolio Theory or Chapter 8: CAPM and Multi-Factor Models. Please solve as soon as possible, I need this. In 10 or 20 minutes.
- Mr. Ahmed has inherited the following portfolio:
| Share | No. of Shares | Beta | Share Price |
| Galaxy plc | 22,876 | 0.65 | $1.25 |
| Constellation plc | 19,809 | 1.45 | $2.75 |
| Orion plc | 35,291 | 1.12 | $1.95 |
- What is the beta of this portfolio?
- If the risk-free rate of return is 6.5 per cent and the risk premium on shares over the Treasury bills has been 5 per cent what is the expected return on this portfolio over the next year?
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Public Finance
Authors: Harvey S. Rosen
5th Edition
025617329X, 978-0256173291
