Question
Consider the following information: Portfolio Expected Return Beta Risk free. 12% 0 Market 12.6% 1 A 10.6% 0.7 a) calculate the expected return of Portfolio
Consider the following information:
Portfolio Expected Return Beta
Risk free. 12% 0
Market 12.6% 1
A 10.6% 0.7
a) calculate the expected return of Portfolio A with a beta of 0.7
b) what is the alpha of portfolio A?
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Financial Economics
Authors: Zvi Bodie, Robert C Merton, David Cleeton
2nd Edition
0558785751, 9780558785758
