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Finance, and how do you reach to the answer. Q: Of the $10,000 invested in a two-stock portfolio, 30 percent is invested in Stock A
Finance, and how do you reach to the answer.
Q: Of the $10,000 invested in a two-stock portfolio, 30 percent is invested in Stock A and 70 percent is invested in Stock B. If Stock A has a beta equal to 2.0 and the beta of the portfolio is 0.95, what is the beta of Stock B?
Q: Suppose that rRF = 5% and rM = 12%. What is the appropriate required rate of return for a stock that has a beta coefficient equal to 1.5?
Q: The current risk-free rate of return, rRF, is 4 percent and the market risk premium, RPm, is 5 percent. If the beta coefficient associated with a firm's stock is 2.0, what should be the stock's required rate of return?
Q: If the risk-free rate of return, rRF, is 4 percent and the market return, rM, is expected to be 12 percent, what is the required rate of return for a stock with a beta, B, equal to 2.5?
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