Question
What is the E(R) on the following portfolio if expected market return is 7.5% and the RF rate is 1.5%? Asset A: Investment = $2500,
What is the E(R) on the following portfolio if expected market return is 7.5% and the RF rate is 1.5%?
Asset A: Investment = $2500, Current Market Value = $2000, Beta = .8
Asset B: Investment = $1500, Current Market Value = $3500, Beta = 1.3
Asset C: Investment = $1000, Current Market Value = $4500, Beta = 1.0
Answers: A) 10.65% B) 9.16% C) 7.39% D) None of the above
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Principles Of Managerial Finance
Authors: Chad Zutter, Scott Smart
16th Global Edition
1292400641, 978-1292400648
