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Risk and Return What is the beta of a portfolio with the expected return of 1 8 % , if the risk - free rate

Risk and Return
What is the beta of a portfolio with the expected return of 18%, if the risk-free rate is 6% and the
risk premium of market portfolio is 8%?
Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is
16%. A share of stock sells for $50 today. It will pay a dividend of $6 per share at the end of the
year. Its beta is 1.2. What do investors expect the stock to sell for at the end of the year?
Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is
16%. A stock has an expected rate of return of 4%. What is its beta? Why would anyone consider
buying this risky asset which provides an expected return less than the risk-free rate?
The rate of return on short-term government securities (perceived to be risk-free) was about 5%.
Suppose the expected rate of return required by the market for a portfolio with a beta measure of
1 is 12%. According to the capital asset pricing model:
(a) What is the expected rate of return on the market portfolio?
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