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What is an asset's expected rate of return if the current risk-free rate is 0.9%, the stock has a beta of -0.1, and the quoted
What is an asset's expected rate of return if the current risk-free rate is 0.9%, the stock has a beta of -0.1, and the quoted market rate is 5%? Given the portfolio below, calculate the portfolio's expected rate of return using CAPM given a market rate of return of 7%, and a risk-free interest rate of 3.5%. Stock Amount invested Beta 1 $5,000 1.2 2 $2,000 0.9 $3.000 10 3 4 $6,000 10.85% 3.85% 07.35% 0 3.5%
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