Question
Stock X, Stock Y, and the market have had the following returns over the past four years. Year Market X Y 1 11% 10% 12%
Stock X, Stock Y, and the market have had the following returns over the past four years.
Year Market X Y 1 11% 10% 12% 2 7 4 -3 3 17 12 21 4 -3 -2 -5 The risk-free rate is 7 percent. The market risk premium is 5 percent. What is the required rate of return for a portfolio which consists of $14,000 invested in Stock X and $6,000 invested in Stock Y?
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Public Finance And Public Policy
Authors: Jonathan Gruber
6th Edition
1319105254, 9781319105259
