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Consider the following information: Portfolio Expected Return Beta Risk-free 10 % 0 Market 18 1.0 A 16 1.5 a. Calculate the expected return of portfolio
| Consider the following information: |
| Portfolio | Expected Return | Beta | |
| Risk-free | 10 | % | 0 |
| Market | 18 | 1.0 | |
| A | 16 | 1.5 | |
| a. | Calculate the expected return of portfolio A with a beta of 1.5. |
| Expected return | % |
| b. | What is the alpha of portfolio A. (Negative value should be indicated by a minus sign.) |
| Alpha | % |
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Money Banking And Financial Markets
Authors: Stephen Cecchetti
2nd Edition
0073523097, 9780073523095
