A stock has a beta of 1.80 and the standard deviation of its returns is 20%....
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A stock has a beta of 1.80 and the standard deviation of its returns is 20%. The market risk premium is 4% and the risk-free rate is 2%. What is the expected return for a portfolio equally invested in the stock and the market (i.c., 50% of the investment in the stock and 50% in the market)? 7.6% O 5.6% 3.8% 6.6% A stock has a beta of 1.80 and the standard deviation of its returns is 20%. The market risk premium is 4% and the risk-free rate is 2%. What is the expected return for a portfolio equally invested in the stock and the market (i.c., 50% of the investment in the stock and 50% in the market)? 7.6% O 5.6% 3.8% 6.6%
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Related Book For
Behavioral Finance Psychology Decision-Making and Markets
ISBN: 978-0324661170
1st edition
Authors: Lucy Ackert
Posted Date:
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