FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the CAPM required return of a portfolio with 31% invested in the market portfolio, 28% invested in risk-free assets, and the rest invested

What is the CAPM required return of a portfolio with 31% invested in the market portfolio, 28% invested in risk-free assets, and the rest invested in a stock with a beta of 1.9? The risk free rate is 1.0% and the expected marketrisk premiumis 5.1%. Answer in percent, rounded to two decimal places.

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

Matlab An Introduction with Applications

Matlab An Introduction with Applications

Authors: Amos Gilat

5th edition

1118629868, 978-1118801802, 1118801806, 978-1118629864

More Books

Students also viewed these Finance questions

Question

1 eBook Your parents will retire in 20 years. They currently have $200,000 saved, and they think they will need $1,900,000 at retirement. What annual interest rate must they earn to reach their goal,...

Answered: 1 week ago

Question

Recall that we used the conjugate gamma prior for , the arrival rate in busses per minute. Suppose our prior belief about this rate is that it should have mean 1/20 arrivals per minute with standard...

Answered: 1 week ago

Question

Puckett Products is planning for $3 million in capital expenditures next year. Puckett's target capital structure consists of 70% debt and 30% equity. If net income next year is $2 million and...

Answered: 1 week ago

Question

★★★★★
In Exercises verify that the function satisfies the differential equation. Function y = 2 sin x + 3 Differential Equation y"+y = 3

Answered: 1 week ago

Question

★★★★★
In 1996, NASA performed an experiment called the Tethered Satellite experiment. In this experiment a 2.0 104-m length of wire was let out by the space shuttle Atlantis to generate a motional emf....

Answered: 1 week ago

Question

★★★★★
1. Decision areas in which management makes decisions

Answered: 1 week ago

Question

★★★★★
3. When a student has been identified as needing special education services, the Individuals with Disabilities Education Act mandates all but which one of the following? A. Accommodations must be...

Answered: 1 week ago

Question

★★★★★
Adam, Bella, and Chris operate a partnership with a complex profit and loss sharing agreement. The average capital balance for Adam, Bella and Chris on December 31, 2014 is $120,000, $270,000, and...

Answered: 1 week ago

Question

★★★★★
Exxon recorded an expense and corresponding liability to recognize potential losses relating to an oil spill in 2006 of $10 million. Its net income for the year was $200 million. It was not able to...

Answered: 1 week ago

Question

★★★★★
Frank Thompson operates a small business that manufactures oversized backyard games. He runs the business as a sole proprietorship. The company uses a job order cost system using a first-in,...

Answered: 1 week ago

Question

★★★★★
the expected return on the stock market is 0.12 (12%) with a variance of 0.374. if the risk-free rate is 3%, calculate the expected return for stock XYZ that has a covariance of 0.14 with the market...

Answered: 1 week ago

Question

★★★★★
15. Mr. Debtor owes Mr. Creditor P100, 000. On the due date, Mr. Debtor delivers a cashier's check for the full amount. Mr. Creditor refuses to accept the check. a. Debtor may make a consignation by...

Answered: 1 week ago

Question

★★★★★
How to identify hardware in a system using CLI or GUI? Make sure you cover the 5 major components of your computer along with the other components that are of interest (things like networking and GPU...

Answered: 1 week ago

Question

★★★★★
1. What music streaming services do students at Olympia High use? 33% of students use Apple Music, 41% use Spotify and 18% use both services. A-Apple Music S=Spotify (a) Create a two way table to...

Answered: 1 week ago

Question

★★★★★
If you borrow $15000 for 4 years at an interest rate of 7.44% per annum, with the interest compounding quarterly, how much will you have to pay at the end of the period? $_______________ (two decimal...

Answered: 1 week ago

Question

★★★★★
Onyemah Corporation uses the FIFO method in its process costing system. Operating data for the Brazing Department for the month of November appear below: Percent Complete with Respect to Units...

Answered: 1 week ago

Question

★★★★★
the fibonacci sequence what is the running time complexity

Answered: 1 week ago

Question

★★★★★
1. What is the semi-annually compounded interest rate if $200 accumulates to $318.77 in eight years? Answer in percentage with two decimal places. 2. What is the quarterly compounded interest rate if...

Answered: 1 week ago

Question

★★★★★
a. Define the meaning of negligence. b. Explain the four elements of negligence.

Answered: 1 week ago

Question

★★★★★
Workers compensation laws provide considerable fi- nancial protection to workers who have a job-related accident or disease. a. Explain the fundamental legal principle on which workers compensation...

Answered: 1 week ago

Question

★★★★★
a. Explain the reasons for the medical malpractice crisis in the United States. b. Identify several proposals for dealing with the medical malpractice problem in the United States.

Answered: 1 week ago

Previous Question Next Question