Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

portfolio's return? E ( R ) of p = r f + b * * ( R m - r f ) = 4 .

portfolio's return?
E(R) of p=rf+b**(Rm-rf)=4.5%+1.05**(10.2%-4.5%)=10.5%
Assume the portfolio's return is 10.5%, the market rate is 10.2%, what's the risk free rate?
E(R) of p=rf+b**(Rm-rf)
10.5%=rf+1.05**(10.2%-rf)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Anthony Saunders, Marcia Cornett

4th Edition

0077262379, 978-0077262372

More Books

Students also viewed these Finance questions

Question

Discuss the impact of religion on individual behavior.

Answered: 1 week ago