Question
Kelly has investments with the following characteristics in her portfolio: Investment in Beta Amount invested Stock Q 1.5 $50,000 Stock R 2 $40,000 Stock S
- Kelly has investments with the following characteristics in her portfolio:
| Investment in | Beta | Amount invested |
| Stock Q | 1.5 | $50,000 |
| Stock R | 2 | $40,000 |
| Stock S | 0.8 | $60,000 |
Given the risk free rate of 2% and the market return of 7%, what is the expected rate of return of Kellys investment portfolio?
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Corporate Finance Principles And Practice
Authors: Denzil Watson, Antony Head
5th Edition
0273725343, 978-0273725343
