Question
Your portfolio consists of $58210 invested in Stock X and $49908 invested in Stock Y. Stock X has a beta of 0.83 and Stock Y
Your portfolio consists of $58210 invested in Stock X and $49908 invested in Stock Y. Stock X has a beta of 0.83 and Stock Y has a beta of 1.05. If the return on Treasury bills is 2.0% and the return on the S&P500 Index is 6.0%, what is the return on your portfolio? Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234)
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the return on the portfolio we need to determine the weighted average of the individual ...
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
