Question
Mike holds a $90,000 portfolio that has an expected return of 11.0% and a beta of 1.20. The risk-free rate is 2%. He plans to
Mike holds a $90,000 portfolio that has an expected return of 11.0% and a beta of 1.20. The risk-free rate is 2%. He plans to add to the portfolio 1,000 shares of Circle Inc. at $10 a share. Circle Inc. has a beta of 2.00. After the purchase of Circle Inc., Mike's portfolio will have an expected return of _____%.
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Principles Of Finance
Authors: Besley, Scott Besley, Eugene F Brigham, Brigham
4th Edition
0324655886, 9780324655889
