Question
Top-Risk Inc. has a beta of 3.8, while Safeway Inc. has a beta of -0.8. Risk-free T-bills offer a 4.5% return and the market risk
Top-Risk Inc. has a beta of 3.8, while Safeway Inc. has a beta of -0.8. Risk-free T-bills offer a 4.5% return and the market risk premium is 16.5%. You form a portfolio with equal amounts in all three assets. Assume the CAPM model holds.
What is the expected retun for the portfolio?
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis Gapenski
1st Edition
1567930905, 978-1567930900
