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Consider the following information: Expected Portfolio Return Beta Risk-free 10% 0 Market 18 1.0 A 16 1.5 Required: a. Calculate the return predicted by
Consider the following information: Expected Portfolio Return Beta Risk-free 10% 0 Market 18 1.0 A 16 1.5 Required: a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.5. Return % b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign.) Alpha %
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
