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There are 4 parts remaining (Portfolio beta and CAPM) You are putting together a portfolio made up of four different stocks. However, you are considering

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(Portfolio beta and CAPM) You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings: a. What is the beta on each portfolio? b. Which portfolio is riskier? c. If the risk-free rate of interest were 4 percent and the market risk premium were 5 percent, what rate of return would you expect to earn from each of the portfolios? a. The beta on the first portfolio is (Round to three decimal places.) Data Table - X Portfolio Weightings Asset Beta First Portfolio Second Portfolio A 2.50 10% 40% B 1.00 10% 40% 0.50 40% 10% D -- 1.50 40% 10% (Click on the icon in order to copy its contents into a spreadsheet.) comp mplete) HW Score: 0%, 0 of 12 p B8-23 (book/static) Question Help. (Portfolio beta and CAPM) You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings: a. What is the beta on each portfolio? b. Which portfolio is riskier? c. If the risk-free rate of interest were 4 percent and the market risk premium were 5 percent, what rate of return would you expect to earn from each of the portfolios? a. The beta on the first portfolio is (Round to three decimal places.) )

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