Question
You've assembled the following portfolio: Stock Beta Portfolio weight 1 1.5 0.4 2 1.1 0.5 3 0.6 0.1 The expected market return is 9% and
You've assembled the following portfolio:
| Stock | Beta | Portfolio weight |
| 1 | 1.5 | 0.4 |
| 2 | 1.1 | 0.5 |
| 3 | 0.6 | 0.1 |
The expected market return is 9% 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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Gapenskis Understanding Healthcare Financial Management
Authors: George H. Pink, Paula H. Song
8th Edition
1640551093, 978-1640551091
