You are going to invest $20,000 in a stock that has a beta of 1.0 and $80,000
Fantastic news! We've Found the answer you've been seeking!
Question:
You are going to invest $20,000 in a stock that has a beta of 1.0 and $80,000 in a stock with a beta of 1.5. What is the beta of the portfolio?
A. 1.4
B .8
C. 1.5
D .2
Assume the following:
- interest rate on Treasury securities is 3% (rRF= 3.0%).
- the return on the market is 10% (rM= 10%).
- the beta of stock I is 1.5.(bi= 1.5).
What is the required return on stock I?
A. 13.5
B. 19.5
C. 15.0
D. 8.0
Posted Date: