QUESTION 4 A portfolio valued at $50,000,000 currently has a beta of 1.2. The risk-free rate...
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QUESTION 4 A portfolio valued at $50,000,000 currently has a beta of 1.2. The risk-free rate is 2%, and the market risk premium is 8.00%. An additional $50,000,000 will be added to the portfolio. After this addition, the portfolio is expected to achieve a return of 12%. Find the average beta of the new stocks needed to meet this goal. 1.4 1.2 1.3 1.5 QUESTION 5 Beta of stock A = 1.2; Beta of stock B = 0.7. Pick the correct answer. Stock A's expected return > Stock B's expected return QUESTION 4 A portfolio valued at $50,000,000 currently has a beta of 1.2. The risk-free rate is 2%, and the market risk premium is 8.00%. An additional $50,000,000 will be added to the portfolio. After this addition, the portfolio is expected to achieve a return of 12%. Find the average beta of the new stocks needed to meet this goal. 1.4 1.2 1.3 1.5 QUESTION 5 Beta of stock A = 1.2; Beta of stock B = 0.7. Pick the correct answer. Stock A's expected return > Stock B's expected return
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