Question
If a company has a 50% chance of producing a 30% return, a 10% chance of producing a 10% return, and a 40% chance of
If a company has a 50% chance of producing a 30% return, a 10% chance of producing a 10% return, and a 40% chance of producing a -30% return, what is the companys expected rate of return?
If the risk-free rate is 1%, the market risk premium is 6% and a company has a beta of 1.5, what is the companys required rate of return according to the CAPM?
You own a portfolio of stocks with 30% of your money invested in company A, 40% of your money invested in company B and 30% of your money invested in company C. If the betas are 0.6 for stock A, 1.0 for stock B and 2.0 for stock C, what is the beta of your portfolio?
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