Question
Consider the following portfolio of four stocks: Security Weight Beta ABC .167 3.09 DEF .25 0.63 GHI .233 1.54 JKL .35 1.81 The 25 -
- Consider the following portfolio of four stocks:
Security Weight Beta
ABC .167 3.09
DEF .25 0.63
GHI .233 1.54
JKL .35 1.81
The 25 - year government of Canada bond has a yield of 2%
The market risk premium is 5%
What is the portfolio beta?
What is the expected return of each security?
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman
5th Edition
0367335417, 978-0367335410
