Question
Tom has $5,000 to invest in a portfolio between Ford and Intel. The portfolio invests 75% of its money in Ford and the rest in
Tom has $5,000 to invest in a portfolio between Ford and Intel.
The portfolio invests 75% of its money in Ford and the rest in Intel. The risk-free interest rate is 3% and the return on the market portfolio is 9%. The beta of Ford is 0.9 and the beta of Intel is 1.2. What is the expected return on the portfolio?
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
