Question
Suppose the expected return on the market portfolio is estimated at 8% and the risk free rate is 1%. According to the CAPM, what percentage
Suppose the expected return on the market portfolio is estimated at 8% and the risk free rate is 1%. According to the CAPM, what percentage of the risk premium on a portfolio invested 50% n a stock with a beta of 1.5 and 50% in the risk free asset?
| A. | 13.10%.
| |
| B. | 4%.
| |
| C. | 15%.
| |
| D. | 10%.
|
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Personal Finance
Authors: E Thomas Garman, Raymond E Forgue
10th Edition
143903902X, 9781439039021
