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You invested $100,000 in the following stocks: Stock Amount Beta ABC $20,000 0.8 DEF $30,000 1.2 GHI $15,000 1.35 JKL $35,000 1.15 If the risk-free
You invested $100,000 in the following stocks:
Stock | Amount | Beta |
ABC | $20,000 | 0.8 |
DEF | $30,000 | 1.2 |
GHI | $15,000 | 1.35 |
JKL | $35,000 | 1.15 |
If the risk-free rate is 5 percent and the market risk premium is 8 percent, what is the expected return on your portfolio?
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