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(Portfolio beta and CAPM) You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings: Data Table
(Portfolio beta and CAPM) You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings: Data Table - X 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 5.5 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.) Asset 9000 Portfolio Weightings First Portfolio Second Portfolio 15% 35% 15% 35% 35% 15% 35% 15% Beta 2.30 1.10 0.60 - 1.40 B D Print Done
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