Question
. What is the beta of a portfolio comprised of the following securities? (3 points) Stock Amount Invested Beta A $5,000 1.20 B $2,000 1.46
. What is the beta of a portfolio comprised of the following securities? (3 points)
Stock Amount Invested Beta
A $5,000 1.20
B $2,000 1.46
C $3,000 .72
b. If the risk-free rate is 4.2% and the market risk premium is 9.5 %, calculate the required rate of return on this portfolio. (2 points)
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Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
5th Edition
0134734203, 978-0134734200
