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Is your portfolio overpriced or underpriced and why? Consequently, which recommendation would you make, Buy/Hold or Sell/dont buy? Please show all your relevant calculations and
Is your portfolio overpriced or underpriced and why? Consequently, which recommendation would you make, Buy/Hold or Sell/dont buy? Please show all your relevant calculations and justify your decision using the Security Market Line. Label X-axis, Y-axis and intercept. Clearly present values on X- and Yaxis when you locate your portfolio in the graph.
y intercept = risk free rate = 1.63$
MRP = 6%
portfolio beta = 1.05094087
average annual reutnrs of portfolio = -0.0321
estimated reutnrs of port = 0.0793
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