Question
You've assembled the following portfolio: Stock Beta Portfolio weight 1 1.7 0.4 2 1.1 0.3 3 0.3 0.3 The expected market return is 6% and
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You've assembled the following portfolio:
| Stock | Beta | Portfolio weight |
| 1 | 1.7 | 0.4 |
| 2 | 1.1 | 0.3 |
| 3 | 0.3 | 0.3 |
The expected market return is 6% and the risk-free rate is 2%. Assume that the CAPM holds.
What is the beta of the portfolio?
What is the expected return of your portfolio?
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Principles Of Managerial Finance
Authors: Chad J. Zutter, Scott Smart
16th Edition
0136945880, 978-0136945888
