A portfolio has an expected return of 18.36%. The portfolio is comprised of 85% stock A and

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A portfolio has an expected return of 18.36%. The portfolio is comprised of 85% stock A and 15% stock B. The risk-free rate of return is 3.73% and the market risk premium is 8.26%. The beta of stock B is 1.00. What is the beta of stock A?

Posted Date: May 15, 2024 05:35 AM

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A portfolio has an expected return of 18.36%. The portfolio is comprised of 85% stock A and

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We can use the Capital Asset Pricing Model CAPM to solve for the beta of stock A A CAPM Formula Expe... View the full answer

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