Question
Question 17 An investor has a 2-stock portfolio with $150,000 invested in Herbert Manufacturing and $100,000 in Biggers Corporation. Herberts beta is 1.20 and Biggers
Question 17
An investor has a 2-stock portfolio with $150,000 invested in Herbert Manufacturing and $100,000 in Biggers Corporation. Herberts beta is 1.20 and Biggers beta is 0.90. The risk-free rate is 3.0%, and the expected return on the market is 7.0%.
| The expected return of the portfolio is (round to 1 decimal place): | ||
| a. 7.3% | ||
| b. 7.8% | ||
| c. 8.2% | ||
| d. 8.5% | ||
| e. 9.6% |
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Managing Finance A Socially Responsible Approach
Authors: D. Crowther
1st Edition
0750661011, 978-0750661010
