Question
Consider the following three individuals' portfolios consisting of investments in four stocks: Stock Beta Peter's Investment Paul's Investment Mary's Investment Eenie 1.3 2,500 5,000 10,000
Consider the following three individuals' portfolios consisting of investments in four stocks:
| Stock | Beta | Peter's Investment | Paul's Investment | Mary's Investment |
| Eenie | 1.3 | 2,500 | 5,000 | 10,000 |
| Meenie | 1.0 | 2,500 | 5,000 | 10,000 |
| Minie | 0.8 | 2,500 | 5,000 | -5,000 |
| Moe | -0.5 | 2,500 | -5,000 | -5,000 |
Required: Assuming that the risk-free rate is 4% and the expected return on the market is 12%, then calculate the required return on Mary's portfolio.
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Emerging Market Finance New Challenges And Opportunities
Authors: Bang Nam Jeon, Ji Wu
1st Edition
1839820594, 978-1839820595
