Question
Hershey has a beta of 0.26 and Packaging Corporation has a beta of 1.08. The risk-free rate is 2.5% and the risk premium is 9.5%.
Hershey has a beta of 0.26 and Packaging Corporation has a beta of 1.08. The risk-free rate is 2.5% and the risk premium is 9.5%. By applying CAPM, what is the expected return on a portfolio made up of 50% Hershey's and 50% Packaging Corporation?
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Analysis for Financial Management
Authors: Robert C. Higgins
10th edition
007803468X, 978-0078034688
