Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A portfolio has an expected return of 13.12%. The portfolio is comprised of 60% stock A and 40% stock 8. The risk-free rate of return

image text in transcribed
A portfolio has an expected return of 13.12%. The portfolio is comprised of 60% stock A and 40% stock 8. The risk-free rate of return is 4% and the market risk premium is 8%. The beta of stock B is.87. What is the beta of stock A? O 1.41 1.32 - 1.36 1.28 1.46

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance

Authors: Harvey S Rosen, Ted Gayer

9th International Edition

0071267883, 9780071267885

More Books

Students also viewed these Finance questions

Question

1. I try to create an image of the message

Answered: 1 week ago

Question

4. What is the goal of the others in the network?

Answered: 1 week ago