PM Corp's stock has a beta of 1.2, while GF Inc. stock has a beta of 1.7.
Fantastic news! We've Found the answer you've been seeking!
Question:
PM Corp's stock has a beta of 1.2, while GF Inc. stock has a beta of 1.7. If the risk-free rate is 2.2%, and the market risk premium is 7%, what is the expected return on a portfolio with 40% weight in PM and 60% in GF Inc.?
Select one:
a.12.7%
b.9.4%
c.10.5%
d.13.25%
e.11.6%
Posted Date: