You invested $240,000 in the following stocks: Stock Amount Beta ABC $67,200 0.93 DEF $67,200 1.33...
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You invested $240,000 in the following stocks: Stock Amount Beta ABC $67,200 0.93 DEF $67,200 1.33 $74,400 1.48 $31,200 1.28 GHI JKL If the risk-free rate is 6.3 percent and the market risk premium is 9.3 percent, what is the expected return on your portfolio? (Round intermediate calculations to 4 decimal places, e.g. 0.3612 and the final answer to 2 decimal places, e.g. 12.36%.) Expected return % You invested $240,000 in the following stocks: Stock Amount Beta ABC $67,200 0.93 DEF $67,200 1.33 $74,400 1.48 $31,200 1.28 GHI JKL If the risk-free rate is 6.3 percent and the market risk premium is 9.3 percent, what is the expected return on your portfolio? (Round intermediate calculations to 4 decimal places, e.g. 0.3612 and the final answer to 2 decimal places, e.g. 12.36%.) Expected return %
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Answer rating: 100% (QA)
To calculate the expected return on the portfolio we can use the Capital Asset Pricing Model CAPM The CAPM formula is as follows Expected Return RiskF... View the full answer
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Posted Date:
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