Question
You have a portfolio consisting of 50% Mead stock, 30% Mattel stock, and 20% Intel stock. Mead stock has a beta of .7; Mattel has
You have a portfolio consisting of 50% Mead stock, 30% Mattel stock, and 20% Intel stock. Mead stock has a beta of .7; Mattel has a beta of .8; Intel has a beta of 1.40. You know that T-bills are returning 6% and the market risk premium (MRP) is 10%. Find the return of your portfolio.
| A. | 15.67% | |
| B. | 11.22% | |
| C. | 14.70% |
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Financial Intelligence For IT Professionals
Authors: Julie Bonner
1st Edition
103215294X, 9781032152943
