Question
Stock X has a beta of = 1.5. Stock Y has a beta of = 0.75. You construct a portfolio with a weight of =
Stock X has a beta of = 1.5. Stock Y has a beta of = 0.75. You construct a portfolio with a weight of = 0.80 invested in stock X and = 0.20 invested in stock Y. The risk-free rate is = 3%.
a) If the market return is = 8%, what is the expected return of your portfolio?
b) If the market return is = 6%, what is the expected return of your portfolio?
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Shape Up Your Finances The Personal Finances Handbook
Authors: Ian Birt
1st Edition
0734608268, 978-0734608260
