Question
The expected rates of return for Stocks A, B, and C are .04, .10, and .12 respectively. The risk free rate is .03 and the
The expected rates of return for Stocks A, B, and C are .04, .10, and .12 respectively. The risk free rate is .03 and the market risk premium is .08. If you invest $3,000, $6,000, and $3,000 in Stocks A, B, and C respectively, what is the beta of the portfolio? Assume that the three stocks are priced in equilibrium.
Select one:
a. .70
b. .80
c. 1.0
d. .75
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
