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Suppose News Corporation shares have a beta of 1.45, whereas CBA shares have a beta of 0.76. If the risk-free interest rate is 3.4%
Suppose News Corporation shares have a beta of 1.45, whereas CBA shares have a beta of 0.76. If the risk-free interest rate is 3.4% and the expected return of the market portfolio is 11.3%, according to the CAPM, a. what is the expected return of News Corp shares? b. what is the expected return of CBA shares? c. what is the beta of a portfolio that consists of 65% News Corp shares and 35% CBA shares? d. what is the expected return of a portfolio that consists of 65% News Corp shares and 35% CBA shares?
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Auditing a business risk appraoch
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
6th Edition
9780324645095, 324645090, 978-0324375589
