The required rate of return on the market is 7% and the risk-free rate is 2.5%. What
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Question:
The required rate of return on the market is 7% and the risk-free rate is 2.5%. What rate of return should an investor expect on a portfolio of three stocks with the following amounts invested and corresponding beta values?
Stock | Amount | Beta |
X | $1,250 | 1.75 |
Y | $1,750 | 1.2 |
Z | $900 | 0.6 |
Express your answer as a percent rounded to two decimal places (15.25 not 0.1525) and do not enter any symbols such as $, comma or %.
Related Book For
Intermediate Financial Management
ISBN: 978-1111530266
11th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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