Question
VRTX, SLB, and APA are all DUK traded stocks. The risk-free rate is 5.35% and the expected return on the market is 14.5%. Ticker Weight
VRTX, SLB, and APA are all DUK traded stocks. The risk-free rate is 5.35% and the expected return on the market is 14.5%.
| Ticker | Weight | Beta |
| VRTX | 0.50 | 0.45 |
| SLB | 0.35 | 1.79 |
| DUK | 0.15 | 0.46 |
a. Given the information above, what is the expected return of each of these stocks?
b. Given the information above, what is the beta and expected return of a portfolio comprised of these stocks and given weights?
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Managing The Audit Function A Corporate Audit Department Procedures Guide
Authors: Michael P. Cangemi
2nd Edition
0471012556, 978-0471012559
