Question
Jim has a three stock portfolio. Details of the portfolio are provided in the table. If the T-bill rate is 5% and the market risk
Jim has a three stock portfolio. Details of the portfolio are provided in the table. If the T-bill rate is 5% and the market risk premium is 5.5%. According to the CAPM, what is the expected return of Jim's portfolio? ____%
Stock A - Investment = $60,000 Beta= 1.6
Stock B- Investment = $80,000 Beta= 1.0
Stock C- Investment = $60,000 Beta= 0.8
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
8th Edition
0324259700, 978-0324259704
