Question
Stock A has a beta of 1.2, Stock Bs beta is 1.46, and Stock Cs beta is .72. If you invest $2,000 in Stock A,
Stock A has a beta of 1.2, Stock Bs beta is 1.46, and Stock Cs beta is .72. If you invest $2,000 in Stock A, $3,000 in Stock B, and $5,000 in Stock C, what will be the beta of your portfolio? What is the expected return of the portfolio if the market risk premium is 7.8% and the risk-free rate is 3.6%?
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Quantitative Finance Its Development Mathematical Foundations And Current Scope
Authors: T. Wake Epps
1st Edition
0470431997, 9780470431993
