QUESTION 1 E 1 2 3 4 5 B D Suppose you have the following data: E(rp) expected return on a portfolio rf risk free rate or return E(rm) expected return on a market portfolio The CAPM : Rp = rf + (Erm - rf)*beta beta = (Rp-rf)/(Erm-rf) 15.10% 3.50% 13.00% 6 7 Based on the CAPM, what is the Beta of the portfolio? a. Portfolio Beta = 1.88 O b. Portfolio Beta = 2.12 c. Portfolio Beta = 1.44 O d. Portfolio Beta = 1.22