Question
If the market risk premium is 14% and the risk-free rate is 5%. Determine the required rate of return of a portfolio consisting of the
If the market risk premium is 14% and the risk-free rate is 5%. Determine the required rate of return of a portfolio consisting of the following stocks:
| Security | Amount Invested (SAR) | Beta |
| STC | 5,000 | 1.31 |
| SABIC | 3,382 | 0.8 |
| SEC | 2,500 | 1.05 |
| Kayan | 1,426 | 1.85 |
| Alaqariyah | 5,496 | 1 |
a. The portfolio beta is ? (use 2 decimals)
b. Portfolio required rate of return = ?% (use 2 decimals)
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Lectures On Public Economics
Authors: Anthony B. Atkinson, Joseph E. Stiglitz
1st Edition
0691166412, 978-0691166414
