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Suppose News Corporation shares have beta of 1.75, whereas CBA shares have a beta of 0.93. If the risk-free interest rate is 5.1% and the
Suppose News Corporation shares have beta of 1.75, whereas CBA shares have a beta of 0.93. If the risk-free interest rate is 5.1% and the expected return of the market portfolio is 13.3%, according to the CAPM, a. what is the expected return of News Corp shares? b. what is the expected return of CBA shares? c. what is the beta of a portfolio that consists of 55% News Corp shares and 45% CBA shares? d. what is the expected return of a portfolio that consists of 55% News Corp shares and 45% CBA shares? C a. What is the expected return of News Corp shares? News Corp's expected return is %. (Round to one decimal place.) b. What is the expected return of CBA shares? CBA's expected return is %. (Round to one decimal place.) c. What is the beta of a portfolio that consists of 55% News Corp shares and 45% CBA shares? The portfolio beta is. (Round to two decimal places.) d. What is the expected return of a portfolio that consists of 55% News Corp shares and 45% CBA shares? The expected return of the portfolio is%. (Round to one decimal place.)
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