Question
The weighting of each these shares in your portfolio and their beta of each share is shown in the following table: Share Weight Beta Charlie
The weighting of each these shares in your portfolio and their beta of each share is shown in the following table:
Share Weight Beta
Charlie 20% 0.65
Delta 30% 0.75
Echo 10% 2.10
Foxtrot 40% 1.20
100%
Is it more or less risky than the market portfolio?
If the market risk premium is 8% and the risk free rate is 6%, what is the expected return of your portfolio?
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
