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 premium
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 | Investment | Beta |
| A | $60,000 | 1.6 |
| B | $80,000 | 1.0 |
| C | $60,000 | 0.8 |
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International Finance
Authors: Keith Pilbeam
5th Edition
1350347094, 978-1350347090
