An investor has the following portfolio: If the T-Bill rate is 5% and the market risk premium

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An investor has the following portfolio:
align="center">Investment Stock Beta Tootsie Roll Industries The Hershey Company $20,000 2.1 $30,000 0.9 1.5 $40,000 Nestle

If the T-Bill rate is 5% and the market risk premium is 5.5% according to the CAPM, what is the expected return for this portfolio.
The
expected return for this portfolio is %.

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...
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Business Statistics

ISBN: 9780321925121

2nd Edition

Authors: Robert A. Donnelly

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