Question
If you invest $6,000 in stock A, $4000 in stock B and $10,000 in stock C, Stock A: r RF = 2%, r M (Market
- If you invest $6,000 in stock A, $4000 in stock B and $10,000 in stock C,
Stock A: rRF = 2%, rM (Market return) 8%, Beta = 1.4, Required Return: 10.4%
Stock B: rRF = 2%, rM (Market return) 8%, Beta = 0.7, Required Return: 6.2%
Stock C: rRF = 2%, rM (Market return) 8%, Beta = 1, Required Return: 8%
- What is the Beta of your above portfolio?
- What is the return of your portfolio?
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Commodity Finance
Authors: Weixin Huang
2nd Edition
0857196650, 978-0857196651
