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Suppose the risk-free rate is 4.60% and the market portfolio has an expected return of 12.50%. A portfolio is invested equally in three securities with
Suppose the risk-free rate is 4.60% and the market portfolio has an expected return of 12.50%. A portfolio is invested equally in three securities with betas of 0.50, 1.25, and 1.30 respectively. What is the expected return on this portfolio?
|
| 12.32% |
|
| 12.63% |
|
| 12.95% |
|
| 13.26% |
|
| 13.58% |
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