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 49% invested in the market portfolio, 7% invested in risk-free assets, and the rest invested

What is the CAPM required return of a portfolio with 49% invested in the market portfolio, 7% invested in risk-free assets, and the rest invested in a stock with a beta of 2.7? The risk free rate is 0.5% and the expected market risk premium is 6.4%. 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

Diversification And Portfolio Management Of Mutual Funds

Diversification And Portfolio Management Of Mutual Funds

Authors: Greg N. Gregoriou

1st Edition

0230019153,0230626505

More Books

Students also viewed these Finance questions

Question

★★★★★
The elliptical steel plate B is used to seal the opening on the water storage tank. Determine the magnitude of the resultant hydrostatic force that acts on it. The density of water is w = 1Mg/m3. 2 m...

Answered: 1 week ago

Question

★★★★★
4. Identify one situation in your life in which each orientation to conflict was, or would have been, appropriate. When would loselose have been appropriate? When would winlose have been a reasonable...

Answered: 1 week ago

Question

★★★★★
(Classification of Liabilities) Presented below are various account balances. (a) Bank loans payable of a winery, due March 10, 2014. (The product requires aging for 5 years before sale.) (b)...

Answered: 1 week ago

Question

★★★★★
You find a bond with 28 years until maturity that has a coupon rate of 6.5 percent and a yield to maturity of 6.1 percent. Suppose the yield to maturity on the bond decreases by 0.25 percent. What is...

Answered: 1 week ago

Question

★★★★★
Based on the following data, what is the amount of working capital? Accounts payable $26,001 Accounts receivable $62,342 Accrued liabilities $6,595 Cash $22,168 Intangible assets $44,231 Inventory...

Answered: 1 week ago

Question

★★★★★
4 Adjacent Stick Game Mukesh and friends have set out on a vacation to Coorg. They have booked accommodation in a resort and the resort authorities organize Camp fires every night as a part of their...

Answered: 1 week ago

Question

★★★★★
Practice Using Highly Accurate Measuring Instruments Vernier caliper practice "certificate" answer Metric micrometer practice "certificate" [answer) Triple beam balance practice "certificate

Answered: 1 week ago

Question

★★★★★
Computerized Accounting with Sage 50 Level 2 The Dog House INTRODUCTION This project will test your understanding of the Sage 50 Accounting application and your ability to apply the features of this...

Answered: 1 week ago

Question

★★★★★
10:16 AM Sun Jan 29 Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
A fuel containing 75 % ethane and 25 % propane is burned with dry air. All the H2 burns to H2O and the CO2 to CO ratio is 10:1. 15% excess air is supplied. Calculate: a) moles stack gas/ moles fuel...

Answered: 1 week ago

Previous Question Next Question