Question
You hold the positions in the table below. Price Shares Beta Amazon.com $ 35.00 128 4.33 Family Dollar Stores 15.00 232 .80 McKesson Corporation 61.00
You hold the positions in the table below.
| Price | Shares | Beta | |
|---|---|---|---|
| Amazon.com | $ 35.00 | 128 | 4.33 |
| Family Dollar Stores | 15.00 | 232 | .80 |
| McKesson Corporation | 61.00 | 136 | 0.97 |
| Schering-Plough Corporation | 31.00 | 471 | 0.55 |
What is the beta of your portfolio?
If you expect the market to earn 16.40 percent and the risk-free rate is 8.00 percent, what is the required return of the portfolio?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The beta of the portfolio is 433 To calculate the required return of the portfolio we n...
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
