Question
Suppose Autodesk stock has a beta of 2.20, whereas Costco stock has a beta of 0.72. If the risk-free interest rate is 4.5 % and
Suppose Autodesk stock has a beta of 2.20, whereas Costco stock has a beta of 0.72. If the risk-free interest rate is 4.5 % and the expected return of the market portfolio is 13.5 %, what is the expected return of a portfolio that consists of 65 % Autodesk stock and 35% Costco stock, according to the CAPM?
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
