Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have $5,000 invested in Security M, $3,000 invested in Security L, and $2,000 invested in Security P.Security M has a beta of 0.85; Security

You have $5,000 invested in Security M, $3,000 invested in Security L, and $2,000 invested in Security P.Security M has a beta of 0.85; Security L has a beta of 1.50; and Security P has a beta of 1.90.The relevant risk -free rate is 7%, and the expected return on the market portfolio is 18%.What is the expected return on your portfolio?Round your answer to the nearest tenth of a percent.

A) 6.8%

B) 18.0%

C) 20.8%

D) 29.6%

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

Essentials Of Statistics For Business And Economics

Authors: David Anderson, Thomas Williams, Dennis Sweeney, Jeffrey Cam

7th Edition

1305081595, 978-1305081598

More Books

Students also viewed these Finance questions

Question

2. Do not crowd the student. Do not get in the students face.

Answered: 1 week ago