Question
Stock Investment beta A $184,000 1.50 B $276,000 0.65 C $460,000 1.25 You have just invested in a portfolio of three stocks. The amount of
| Stock | Investment | beta |
| A | $184,000 | 1.50 |
| B | $276,000 | 0.65 |
| C | $460,000 | 1.25 |
You have just invested in a portfolio of three stocks. The amount of money that you invested in each stock and its beta are summarized above.
Calculate the beta of the portfolio and use the Capital Asset Pricing Model (CAPM) to compute the expected rate of return for the portfolio. Assume that the expected rate of return on the market is 18% and that the risk-free rate is 7%
Round beta to 3 decimal places, and expected rate of return to 2 decimal places.
What is the beta?
What is the expected rate of return? (%)
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The Art Of The Steal How To Protect Yourself And Your Business From Fraud
Authors: Frank W. Abagnale
1st Edition
0767906845, 978-0767906845
