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letter c suppose be 11.36% but not accepting the answer (Portfolio beta and CAPM) You are putting together a portfolio made up of four different
letter c suppose be 11.36% but not accepting the answer
(Portfolio beta and CAPM) You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings: a. What is the beta on each portfolio? b. Which portfolio is riskier? c. If the risk-free rate of interest were 4.5 percent and the market risk premium were 7 percent, what rate of return would you expect to earn from each of the portfolios? a. The beta on the first portfolio is (Round to three decimal places.) The beta on the second portfolio is 0.98. (Round to three decimal places.) b. Which portfolio is riskier? (Select the best choice below.) A. The first portfolio because the beta is larger. B. The first portfolio because the beta is smaller. C. The second portfolio because the beta is smaller. D. The second portfolio because the beta is larger. Data table (14) you are putting together a portfolio madeup of faur different stocks, Do a)(128de2.00)+(12700.90)+(38%0x0.55)+(3890x1.60)=0.051 undd=(38302.00)+(38700.90)+(270055)+(12901.60)=0.9760.98 D) The second port forio because the bett is larger c) 21.5+0.051(770)=0.04432.1470 45%10.98(790)=0.113611.3620Step by Step Solution
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