(a) If the expected rate of return on the market portfolio is 14% and the risk-free rate...

Question:

(a) If the expected rate of return on the market is 14% and the risk-free rate is 6%, find the beta for a that has expected rate of return of 10%. What assumptions concerning this and/or market conditions do you need to make to calculate the portfolio's beta?
(b) What percentage of this must an individual put into the market in order to achieve an of 10%?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...