The expected returns for securities A, B and C are listed below: Security B Security A...

 

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The expected returns for securities A, B and C are listed below: Security B Security A 12% 18% Expected returns Security C 9% Assume a risk-free rate of 3% and market premium of 6%. .1. What are the betas for the three securities? [4] 2. For a portfolio consisting of 20% of Security A, 45% of Security B, and 35% of Security C, determine the portfolio's expected return and beta. [6] The expected returns for securities A, B and C are listed below: Security B Security A 12% 18% Expected returns Security C 9% Assume a risk-free rate of 3% and market premium of 6%. .1. What are the betas for the three securities? [4] 2. For a portfolio consisting of 20% of Security A, 45% of Security B, and 35% of Security C, determine the portfolio's expected return and beta. [6]

Answer rating: 100% (QA)

To calculate the betas for the three securities we can use the Capital Asset Pricing Model CAPM form... View the full answer