Question
Consider the following information: Portfolio Expected Return Beta Risk-free 6 % 0 Market 10.2 1.0 A 8.2 1.4 a. Calculate the expected return of portfolio
| Consider the following information: |
| Portfolio | Expected Return | Beta | |
| Risk-free | 6 | % | 0 |
| Market | 10.2 | 1.0 | |
| A | 8.2 | 1.4 | |
| a. | Calculate the expected return of portfolio A with a beta of 1.4. (Round your answer to 2 decimal places.) |
| Expected return | % |
| b. | What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) |
| Alpha | % |
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The Venture Capital Investment Process
Authors: Darek Klonowski
1st Edition
0230612881, 023011007X, 9780230612884, 9780230110076
