Question
Suppose you would like to invest $10000 in the stock market. You want to create a two-stock portfolio including the following two stocks: $4000 invested
Suppose you would like to invest $10000 in the stock market. You want to create a two-stock portfolio including the following two stocks: $4000 invested in Wal-mart, with beta equal to 0.3, and $6000 invested in Nordstrom, with beta equal to 1.5. What is portfolio's beat? 2. If the risk free rate is 2%, and the market risk premium is 5%, what is the required rate of return on your portfolio?
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Money Banking And Financial Markets
Authors: Stephen G. Cecchetti
1st Edition
0072452692, 9780072452693
