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Jo Taylor, a portfolio manager, is putting together a portfolio with two different assets. Stock A has a beta of 1.16 and Stock B has
- Jo Taylor, a portfolio manager, is putting together a portfolio with two different assets. Stock A has a beta of 1.16 and Stock B has a beta of 1.50. The risk free return is 3.5% and the market risk premium is 5.5%.
- What is the market expected rate of return?
- What is the expected rate of return and the beta of a portfolio consisting of 40% Stock A and 60% Stock B?
- What is the expected rate of return and the beta of a portfolio consisting of 40% Stock A, 40% Stock B and 20% of the risk free?
- What is the expected rate of return and the beta of a portfolio consisting of 60% Stock A, 60% Stock B and -20% of the risk free?
- What is the market expected rate of return?
- What is the expected rate of return and the beta of a portfolio consisting of 40% Stock A and 60% Stock B?
- What is the expected rate of return and the beta of a portfolio consisting of 40% Stock A, 40% Stock B and 20% of the risk free?
- What is the expected rate of return and the beta of a portfolio consisting of 60% Stock A, 60% Stock B and -20% of the risk free?
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