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Problem 18 You have until 9:00 PM to complete this assignment. Intro You've assembled the following portfolio: Stock Beta Portfolio weight 1 1.4 0.4 2
Problem 18
You have until 9:00 PM to complete this assignment.
Intro
You've assembled the following portfolio:
Stock | Beta | Portfolio weight |
1 | 1.4 | 0.4 |
2 | 1.1 | 0.5 |
3 | 0.7 | 0.1 |
The expected market return is 6% and the risk-free rate is 2%. Assume that the CAPM holds.
Attempt 1/1
Part 1
What is the beta of the portfolio?
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Attempt 1/1
Part 2
What is the expected return of your portfolio?
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