Assume that the treasury yield is currently 2.3%, the expected market risk premium 6.7%, and the equity

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Assume that the treasury yield is currently 2.3%, the expected market risk premium 6.7%, and the equity betas for firms A and B are 1.111 and 2.222. You create a portfolio by investing $5,000 in shares of firm A and $5,000 in shares of firm B.

What is your portfolio’s expected return?

10%

2.3%

7.2%

13.5%

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-1305635937

Concise 9th Edition

Authors: Eugene F. Brigham

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Posted Date: Oct 08, 2023 05:20 AM

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Assume that the treasury yield is currently 2.3%, the expected market risk premium 6.7%, and the equity

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