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please answer 3 question You are evaluating an investment in two company's common stocks. You have collected the following information about Common stock A and
please answer 3 question
You are evaluating an investment in two company's common stocks. You have collected the following information about Common stock A and B. a) If you invest 50% of your money in each of the two investments, what is the expected rate of return? (1 Marks) b) What is the standard deviation in portfolio return? (3 Marks) c) Given the capital asset pricing model, a security with a beta of 1.8 should return if the risk-free rate is 3% and Market return is 11%. (1 Marks) Step by Step Solution
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