Question
The expected rates of return for Stocks A and B are .06 and .12 respectively. The risk free rate is .04 and the market risk
The expected rates of return for Stocks A and B are .06 and .12 respectively. The risk free rate is .04 and the market risk premium is .08. If you invest $6,000 and $4,000 in Stocks A and B respectively, what is the beta of the portfolio? Assume that the 2 stocks are priced in equilibrium.
Select one:
a. 1
b. .45
c. .75
d. .65
e. .55
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
